The Reserve Bank of India (RBI) cut its key repo rate by a larger-than-expected 50 basis points on Friday and slashed the reserve ratio for banks as low inflation gave policymakers room to focus on supporting growth amid a volatile global economy.

India's central bank cut interest rates more than expected on Friday, citing muted inflation and a need to kickstart economic growth as the impact of US tariffs weighed on the country's outlook. "This changed growth inflation dynamics calls for not only continuing with the policy easing,

India's central bank has lowered interest rates by a deeper-than-expected half a percent - the third cut in a row amid falling inflation and lower growth in Asia's third largest economy. The repo rate now stands at 5.5% - the lowest in three years.