India’s central bank raised interest rates in a bid to tame inflation. Central bank governor Shaktikanda Das said the monetary policy committee decided to raise the repo rate by 50 basis points to 5.40 percent.
Four of the six economists expected the central bank to raise the repo rate by half a percentage point, while the other two expected a 35 basis point increase.
India’s consumer price index came in at 7.01% from a year earlier, up from 7.04% in May and the central bank’s target of 2%-6%.
The war between Russia and Ukraine has disrupted supply chains and increased inflationary pressures, leading major central banks to raise interest rates in recent months.
India’s central bank raised interest rates by 50 basis points to 4.90% in June, following a 40 basis point hike in the May meeting.