India is expected to cut interest rates for the first time in nearly five years on Friday to provide stimulus to its sluggish economy, with easing price pressures giving policymakers more room to manoeuvre.

The decision by RBI on Friday to reduce its key rate for the first time in five years comes less than a week after the government unveiled historic tax cuts in Budget 2025

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%.

By Bharath Rajeswaran (Reuters) -Indian shares fell marginally on Friday after the domestic central bank cut interest rates for the first time in nearly five years to support slowing economic growth,