In a surprise move, the Reserve Bank of India central bank raised its key interest rate for the first time in two years, stating that its decision was based on efforts to rein in inflation that is threatening India’s economic recovery from the pandemic.
On Wednesday, May 4, just before a scheduled rise in U.S. interest rates, the Reserve Bank of India raised its overnight lending rate to 4.40% from 4%, marking the first increase since the bank lowered the rate at the start of the pandemic to boost the economy.
