Bank of India raises interest rates by 0.50% after inflation exceeds target

The Reserve Bank of India (RBI) has raised its repo rate, the policy interest rate, by 0.50% to 5.90%, its fourth rate hike in a row this year. to thwart a sharp spike in inflation.

The RBI has raised the policy interest rate by 0.50% both in August and June. after raising interest rates by 0.40% at the May meeting.

India’s August inflation rate rose to 7% year-on-year. due to rising food prices, Inflation has been above the RBI’s target of 2-6% for eight months in a row.

The RBI follows monetary policy in line with other central banks around the world that have raised interest rates in recent months to stave off rising inflation after the economy recovered from the impact of the COVID-19 crisis. and from the effects of the war between Russia and Ukraine.

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