This marks the third straight rate cut since February. It comes below the median estimates of 5.75% in a Reuters poll. India's central bank delivered an outsized cut to its benchmark policy rate, bringing it to 5.

The Reserve Bank of India (RBI) cut its key repo rate by a larger-than-expected 50 basis points (bps) on Friday, a third consecutive reduction, and slashed the reserve ratio for banks as muted inflation provided space for policymakers to focus on supporting economic growth.

India’s central bank surprised markets with a jumbo rate cut, seizing on cooling inflation to frontload monetary easing and bolster economic growth amid heightened global uncertainty.