India, Feb. 7 -- The Reserve Bank of India reduced its key interest rates for the first time in nearly five years as the newly appointed governor prioritized providing impetus to economic growth than containing inflation and, underlined that the bank does not target any exchange rate level for the rupee.
The 6-member RBI Monetary Policy Committee, headed by Governor Sanjay Malhotra, decided to lower the policy repo rate by 25 basis points to 6.25 percent from 6.50 percent.
This was the first reduction since May 2020. Markets had widely expected the rate cut after the bank signaled a shift in stance last year and took several measures to boost liquidity in the financial system including a reduction to the cash reserve ratio in December and...