(MENAFN) India's central bank is expected to cut interest rates for a third time in five months when it meets this week, confident that inflation is stable enough to weather the summer monsoon, AFP reported.

The Reserve Bank of India (RBI) has already lowered its benchmark repo rate, which represent the level at which it lends to commercial banks, by 50 basis points to 7.5 percent this year.

Analysts believe the RBI will snip rates again at its next meeting on Tuesday in a bid to encourage greater lending to businesses and increased consumer spending, stimulating the economy.