The Reserve Bank of India (RBI) lowered its key repo rate on Wednesday for a second consecutive time and changed its monetary policy stance signalling room for more cuts ahead, as it seeks to boost the sluggish economy in the face of fresh U.

(Reuters) - The Reserve Bank of India cut its key repo rate on Wednesday for a second consecutive time and changed its monetary policy stance to "accommodative" from "neutral" to boost the sluggish economy, which is facing further pressure from U.S. tariffs.

India’s central bank Governor Sanjay Malhotra said US tariffs will hit the economy’s growth, the first official indication of the negative consequences of the trade action.

India's Finance Minister Nirmala Sitharaman said her country's economy - hit by U.S trade tariffs - will need help from the Reserve Bank of India and the government as she welcomed Wednesday's interest rate cut by the central bank.

The Reserve Bank of India is expected to keep sufficient surplus in the banking system to ensure policy transmission and is looking at a level of around 1% of deposits, Governor Sanjay Malhotra said on Wednesday in his monetary policy address.