The Reserve Bank of India on Friday raised its key interest rate by 50 basis points to 5.40 percent, its highest level since August 2019. Photo: Sajjad HUSSAIN / AFPSource: AFPIndia's central bank on Friday hiked interest rates for the third time in four months, as Asia's third-largest economy contends with a widening trade deficit and weakening currency. India bounced back strongly from the coronavirus pandemic with one of the world's fastest growth rates but is now grappling with rising costs as commodity prices remain elevated. The RBI retained its growth forecast at 7.2 percent for the 2022-23 financial year and retained its inflation forecast at 6.7 percent. India's benchmark Sensex index erased early losses to trade 0.56 percent higher on Friday following the interest rate decision.

Source: Daily Nation August 05, 2022 06:05 UTC