India cuts rates to 5.25% as expected as central bank flags ‘weakness in some key economic indicators’

India's central bank on Friday cut its policy rate by 25 basis points to 5.25%, matching forecasts from economists polled by Reuters.

The monetary policy committee delivered a unanimous reduction, citing "weakness in some key economic indicators," even as headline inflation has eased significantly and is expected to be revised lower in the first quarter of 2025, said RBI governor Sanjay Malhotra.

The economy expanded 8.2% from July to September, outpacing expectations, while inflation remains subdued .

"Despite an unfavorable and challenging external environment, the Indian economy has shown remarkable resilience," Malhotra said, noting signs of "high growth."

"The headroom provided by the inflation outlook has allowed us to remain growth supportive. We will continue to meet produc