The RBI maintained its "accommodative" stance but said further rate reductions would depend on the level of inflation.

The repo rate was cut to 5.40% and the reverse repo rate was reduced to 5.15%..

In a Reuters poll, 80% of 66 analysts had predicted the monetary policy committee (MPC) would cut the repo rate to 5.50%. All six MPC members voted for a 25 basis points cut, the statement said.