India unexpectedly hikes key rate in off-cycle meeting

Reserve Bank of India raises benchmark by 40 bps to 4.40% in bid to stem inflation

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The Reserve Bank of India unexpectedly raised rates on Wednesday. © Reuters

KIRAN SHARMA, Nikkei staff writer

NEW DELHI -- In an off-cycle policy meeting, the Reserve Bank of India on Wednesday hiked its repo rate by 40 basis points to 4.40% as inflation stemming from the Ukraine war continues to rise.

RBI Governor Shaktikanta Das said the bank's monetary policy committee -- which held an unscheduled meeting on May 2 and 4 -- voted unanimously to raise the key lending rate with immediate effect.

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