Mumbai, Oct. 5 -- The Reserve Bank of India (RBI) on Friday cut the key policy rate to its lowest levels in nearly a decade, stepping up its efforts to kickstart an economy growing at its slowest pace in six years. The central bank's monetary policy committee announced a 25 basis points cut in its policy rates for a fifth straight meeting this year while maintaining an accommodative policy stance till the time growth revives. With this move, the repo rate -the rate at which banks borrow from RBI - stands reduced to 5.15% and reverse repo rate at 4.9%. A Mint survey of bankers and economists had said that RBI is expected to reduce policy rates by 25 basis points, while a minority expected a 40 basis points cut.

The MPC noted that "accommoda...