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The Reserve Bank of India on Thursday slashed its repo rate by 25 basis points to 6 percent, in line with economists' expectations, and lowered the growth and inflation outlook.
The reverse repo rate was lowered to 5.75 percent and the marginal standing facility rate was cut to 6.25 percent.
The Monetary Policy Committee decided to maintain the neutral monetary policy stance, the RBI said.
"These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth," the bank said.
