The Reserve Bank of India (RBI) raised its key interest rate following the results of the fifth meeting in a row, to the highest level since March 2019.
The repo rate was raised by 35 basis points (bp) – up to 6.25% per annum. Experts polled by The Wall Street Journal also predicted a 35 bp rate hike
inflation forecast at 6.7%.
India's economic growth forecast, despite worsening expectations, is quite strong given the general downturn in global activity, Shaktikanta Das, head of the RBI, said on Wednesday.
“We need to keep fighting inflation,” he said.
Consumer prices in India rose by 6.8% in October in annual terms. Inflation slowed down from 7.4% in September, but remained above the CBR's target range of 2-6%.
The RBI began its current tightening cycle in May, when it raised rates for the first time almost in four years – by 40 b.p. Following this, the Central Bank increased the rate in July, August and September – each time by 50 bp