The Reserve Bank of India (RBI) on Friday raised the benchmark interest rate by 50 basis points to 5.90% in an effort to try to control escalating inflation in the country. .
The decision came in line with the expectations of most analysts. Five of the seven economists consulted by the The Wall Street Journal expected an increase of 0.5 percentage point, while three others predicted an adjustment of 30 basis points.
In a statement, the institution said it is focused on removing monetary accommodation to ensure the return of inflation to the 4% target, with a tolerance of 2 percentage points down and up.
In August, the Indian consumer price index (CPI) rose at an annual rate of 7.0%, an acceleration after a 6.7% increase in July.
The increase now released follows the cycle of monetary tightening that began in May, when the RBI raised rates by 40 basis points in an emergency meeting.
Subsequently, the Bank promoted increases of 50 basis points in each of the June and August meetings.
Source: CNN Brasil
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