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.

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’s six-member monetary policy committee, headed by Governor Sanjay Malhotra, voted five to one to lower the benchmark repurchase rate by 50 basis points to 5.5%.