The Reserve Bank of India hikes interest rates more than expected
The Central Bank of India (RBI) raised interest rates slightly above market expectations.
RBI said the repo rate was increased from 4.40 percent to 4.90 percent. The expectation on the markets was that the interest rate would be increased to 4.80 percent.
The RBI hiked rates for the second straight meeting. The bank raised interest rates by 40 basis points at its last meeting.
RBI President Shakktanta Das indicated that inflation rose at a press conference regarding the tolerance level decision.
The latest consumer prices in India were the highest in the last 8 years at 7.79 percent and wholesale prices were the highest in the last 30 years at 15.08 percent.