The Reserve Bank of India (RBI) cut its key interest rate for the first time in nearly five years on Friday, as it seeks to boost the sluggish economy and sees inflation easing towards its 4% target.

(Reuters) -The Reserve Bank of India (RBI) reduced its key repo rate on Friday for the first time since May 2020, aiming to provide stimulus to the sluggish economy, which is projected to grow at its slowest pace in four years during the current fiscal year.

The Reserve Bank of India has cut its key interest rate for the first time in nearly five years, as cooling inflation has offered room to stimulate the slowing economy. The central bank forecast real GDP growth for next fiscal year at 6.

India’s finance minister gave middle class consumers 1 trillion rupees ($11.5 billion) in tax relief in her budget Saturday, seeking to shore up a slowing economy as global risks worsen.

By Bharath Rajeswaran (Reuters) -Indian shares rose on Friday, led by interest rate-sensitive sectors, after the central bank cut interest rates for the first time in nearly five years, as was widely expected,

India's GDP growth is seen slowing to a 4-yr low this financial year. India's central bank has cut interest rates for the first time in nearly five years to counter slowing growth in Asia's third largest economy.

Central banks around the world cut interest rates last year, with India maintaining higher rates due to lingering inflation. India maintained high rates due to lingering inflation. Last year, India's economy grew at a rate of 8%.