New Delhi, Dec. 5 -- The Reserve Bank of India on Friday reduced the key interest rate by 25 basis points to 5.25% after inflation eased to a record low.

The central bank also maintained its 'neutral' stance, which allows it to move in either direction, according to a statement after a meeting of the rate-setting Monetary Policy Committee.

A Mint poll of 13 economists showed that nine expected a pause in the repo rate, while four had anticipated a 25-basis point cut to 5.25%. (One basis point equals 0.01%.)

The divergence of views reflected a rare point for India's macro economy with record-low inflation, surprisingly strong real gross domestic product (GDP) prints, weakening nominal GDP growth, and emerging external sector risks, all ...