DHAKA: India’s central bank has cut a key interest rate to its lowest level for nearly six years, in an effort to boost the economy.

The bank cut its benchmark repo rate to 6.25% from 6.50%, reports the BBC.

This was the first interest rate review under the new governor of the bank, Urjit Patel, who took over last month.

While Patel’s predecessor was in sole charge of rate setting, this latest cut was decided by the newly formed monetary policy committee.

The Reserve Bank of India did not say how members of the six-strong committee voted.

Patel replaced Raghuram Rajan, who announced he was stepping down earlier this year.

He is known to take a tough line on inflation, which remains one of the big worries in the Indian economy.

The monetary policy meeting was a much-awaited event for the markets for several reasons.

BDST: 1100 HRS, OCT 05, 2016
RR