MUMBAI, June 6 (Reuters) - The Reserve Bank of India cut its policy interest rate by 25 basis points in a widely expected move on Thursday, while also changing its monetary policy stance to “accommodative” after the economy grew at its slowest in over four years.
The six-member monetary policy committee (MPC) cut the repo rate to 5.75 percent as predicted by 44 of 66 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.50 percent.
All six of the MPC members voted for a 25 basis points cut, and for the policy stance to be changed to “accommodative” from “neutral”. (Reporting by Swati Bhat; Editing by Simon Cameron-Moore)