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India’s central bank on Wednesday raised its key interest rate by 50 basis points to 5.4% in its third such hike since May as it focuses on containing inflation.
Reserve Bank of India Governor Shaktikanta Das projected inflation at 6.7% in this financial year. June was the sixth consecutive month with inflation above the central bank’s tolerance level of 6%, he said in a statement after a meeting of the bank’s monitoring committee.
The committee decided « to remain focused on the withdrawal of accommodation to ensure that inflation remains within the target going forward while supporting growth, » he said.
Das said the global economic and financial environment has deteriorated with the combined impact of monetary policy tightening across the world and the war in Ukraine raising risks of a recession.
