India Central Bank Raises Policy Rate to Help Control Inflation

- Advertisement -


By Kosaku Narioka

- Advertisement -
- Advertisement -

India’s central bank has unexpectedly raised its key policy rate to help control inflation.

Reserve Bank of India Gov. Shaktikanta Das said Wednesday that the monetary-policy committee held an unscheduled meeting and decided to raise its policy repo rate by 40 basis points to 4.40%.

- Advertisement -

Mr. Das said the decision was unanimous.

Write to Kosaku Narioka at kosaku.
buy prelone online buy prelone online no prescription

[email protected]

By Kosaku Narioka

India’s central bank has unexpectedly raised its key policy rate to help control rising inflation caused in part by the war in Ukraine.

Reserve Bank of India Gov. Shaktikanta Das said Wednesday that the monetary-policy committee held an unscheduled meeting and unanimously decided to raise its policy repo rate by 40 basis points to 4.40%.

“Globally, inflation is rising alarmingly and spreading fast,” Mr. Das said, adding that geopolitical tensions are ratcheting up inflation while moderating external demand.

The war between Russia and Ukraine, both important commodity producers, has disrupted supply chains and boosted inflationary pressure in the global economy.

The Indian consumer price index increased 6.95% in March from a year earlier, following a 6.07% rise in February, compared with the Reserve Bank of India’s inflation target range of 2% to 6%.

Mr. Das said the country’s inflation likely remained elevated in April.

Mr. Das said Wednesday’s announcement should be seen as a continuation of its plan announced in April to gradually withdraw policy accommodation.

The central bank said in April that it planned to gradually withdraw excess liquidity starting this year, as extraordinary liquidity measures in response to the pandemic have left a liquidity overhang.

Write to Kosaku Narioka at [email protected]

,

Credit: www.marketwatch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox