India central bank delivers first rate cut since 2020

MUMBAI, Feb 7 (AFP) : India's central bank cut interest rates Friday for the first time in nearly five years, as concerns over a growth slowdown in the world's fifth largest economy outweighed inflation risks.
The Reserve Bank of India (RBI) said the benchmark repo rate, the level at which it lends to commercial banks, would be reduced by 25 basis points to 6.25 percent.
While major central banks around the world cut rates last year, with some continuing to do so, lingering inflation prevented India's from following suit.
Retail inflation in the country has cooled recently, coming in at a four-month low of 5.22 percent in December, but still remains above the central bank's medium-term target of four percent.
India's economy expanded much slower than expected in the September quarter, owing to sluggish manufacturing and tepid urban consumption.