India's central bank resorted to another rate cut on Friday, to revive economic growth. The Monetary Policy Committee of the Reserve Bank of India decided to reduce the key repo rate by 25 basis points to 5.15 percent from 5.40 percent, with immediate effect.

The central bank had lowered its rates four times this year. The reverse repo rate was adjusted to 4.90 percent and the marginal standing facility rate and the Bank Rate were reduced to 5.40 percent. Policymakers also decided to continue with an accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target.

RBI Cuts Real Growth Outlook For 2019-20 To 6.1% From 6.9% 

All members of the MPC voted to reduce the policy repo rate but one member sought a bigger 40 basis point reduction. The MPC said the impact of monetary policy easing since February 2019 is gradually expected to feed into the real economy and boost demand. The central bank lowered its real growth projection for 2019-20 to 6.1 percent from 6.9 percent. Inflation projection for the second half of financial year 2019-20 was retained at 3.5-3.7 percent.

Indian Rupee Little Changed Vs U.S. Dollar After RBI Rate Cut; Now Worth 70.67 

India Services Sector Contracts In September  

India's services sector activity deteriorated in September, survey results from IHS Markit showed on Friday. The services Purchasing Managers' Index, or PMI, fell to 48.7 in September from 52.4 in August. Any reading below 50 indicates contraction in the sector. The sector contracted for the first time in three months and logged its weakest performance since February 2018.

New work contracted in September after an expansion of eighteen months, while international orders increased for the seventh straight month. Employment growth softened to the slowest since June and backlogs of work fell for the first time in forty months in September. On the price front, input prices rose but the rate of inflation eased to the weakest level in over two-and-a-half years. Prices charged for services was little-changed from August but outpaced the input price inflation. Business sentiment decreased in September with optimism falling to thirty-one month low. The composite output index fell to 49.8 in September from 52.6 in the previous month. The score fell below 50 for the first time in nineteen months.