India central bank cuts key rate 25 basis points, changes stance to neutral

India’s central bank on Thursday unexpectedly lowered interest rates and shifted its stance to “neutral” from “calibrated tightening” to boost a slowing economy after a sharp fall in the inflation rate.

The monetary policy committee (MPC) cut the repo rate by 25 basis points to 6.25 percent, as predicted by only 21 of 65 analysts polled by Reuters. Most polled respondents had expected the central bank to only change the stance, to neutral.

Four of six members of the MPC voted to cut the rates, while all six members voted for a change in the stance.