MUMBAI (Reuters) - The Reserve Bank of India (RBI) cut its key repo rate by a larger-than-expected 50 basis points on Friday, a third consecutive reduction, as muted inflation provided space for policymakers to focus on supporting economic growth.

India’s central bank cut interest rates more than expected on Friday. For this, the Reserve Bank of India (RBI) cited muted inflation and a need to kickstart economic growth. This happened as the impact of US tariffs weighed on the country’s outlook.

In a move that surpassed expectations, the Reserve Bank of India on Friday cut the repo rate by 50 basis points to 5.5%, offering relief to borrowers with likely lower EMIs. The cut - double the widely anticipated 25 basis points - takes the total reduction since February to 100 basis points.