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Asia, Forex

India’s central bank cuts rates by 35 bps, more than expected

(Corrects last line to say 4 MPC members voted for a 35 basis point cut)

MUMBAI, Aug 7 (Reuters) – The Reserve Bank of India cut interest rates by an unconventional 35 basis points slightly above expectations on Wednesday, its fourth cut in 2019 to try to boost a sluggish economy growing at its slowest pace in nearly five years.

The RBI maintained its “accommodative” stance but said further rate reductions would depend on the level of inflation.

The repo rate was cut to 5.40% and the reverse repo rate was reduced to 5.15%..

In a Reuters poll, 80% of 66 analysts had predicted the monetary policy committee (MPC) would cut the repo rate to 5.50%.

Four MPC members voted for a 35 basis points cut while two voted for a 25 basis point cut, an MPC statement said. (Reporting by Swati Bhat and Abhirup Roy; Editing by Richard Borsuk)

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