India's central bank lowers the growth forecast for the country's economy in 2025 to 6.6 percent, from previously 7.2 percent. At the same time, the inflation forecast is raised to 4.8 percent, from 4.5 percent.
The forecast adjustment comes in an interest rate decision where the repo rate is left unchanged at 6.5 percent, which was expected. However, the central bank lowers the interest rate on deposits by 0.5 percentage points to 4.0 percent.
The central bank also gives Indian banks permission to raise the interest rates they can offer foreign customers, in order to stimulate capital inflows to the country.
The Indian stock exchange reacted cautiously positively to the interest rate decision and the Indian rupee strengthened slightly.
