India hikes interest rates by 50 basis points
India's central bank on Wednesday hiked rates for a second time in as many months, as Asia's third-largest economy reels from galloping inflation in the wake of the Ukraine war.
The Reserve Bank of India raised its key repo rate by 50 basis points to 4.90 per cent, a month after kicking off an aggressive monetary tightening cycle with a surprise 0.4 percentage point lift in May.
"The war in Europe is lingering and we are facing newer challenges each passing day," Bank governor Shaktikanta Das said in a televised address, pointing to higher food and fuel prices.
He added that inflation was a global problem but emerging economies were facing "bigger challenges", with market turbulence following monetary policy shifts in advanced economies.