By Sarwar Kashani |

New Delhi, May 22 (efe-epa).– India’s central bank decided to cut its key policy rate in an emergency meeting on Friday amid fears that the economy may contract due to a stringent Covid-19 lockdown that has tapered off business activities and caused a significant drop in consumption.

Reserve Bank of India Governor Shaktikanta Das said the bank reduced the rate at which it lends to commercial banks by 40 basis points to four percent to help economy battle the liquidity crunch. The bank also slashed the reverse repo rate by 40 basis points to 3.35 percent.EFE