The Reserve Bank of India (RBI) cut key lending rates by another 35 basis points to 5.40 per cent on Wednesday.
The repo rate is lowest since April 2010.
Benchmark interest rate was cut by 0.35 per cent to 5.40 per cent from 5.75 per cent, a move that would result in lower cost of borrowing for the banks that are expected to pass on the benefits to individuals and corporates.
RBI trims GDP growth forecast for current fiscal to 6.9 per cent from 7 per cent previously predicted.
CPI inflation is projected at 3.1 per cent for Q2 FY20 and 3.5-3.7 per cent for H2 FY20, said RBI.
RBI maintains accommodative stance for monetary policy; says inflation to remain within targeted band.