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.

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.

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.