Indias central bank raises rates for first time in three years - Kuwait Times

MUMBAI: India's central bank raised its benchmark interest rate by 25 basis points to 5.50 percent on Wednesday, marking its first increase in more than three years as it seeks to rein in inflation and support the weakened rupee. The Reserve Bank of India (RBI) approved the increase unanimously through a six-member monetary policy committee in a shift that aligns India with central banks worldwide moving to counter price pressures or prop up their currencies. The rate — known as the repurchase rate, at which the RBI lends to commercial banks — had held steady since late 2023 while policymakers assessed the impact of volatile energy prices on Asia's third-largest economy. Economic growth proved resilient enough to justify the shift.