India's central bank has decided to raise the policy rate for the second straight month in order to curb inflation as global inflation continues, partly due to the situation in Ukraine.
The Reserve Bank of India, the central bank, held a meeting to decide monetary policy on the 8th and decided to raise the policy interest rate by 0.5% to 4.9%.
This is the second consecutive month of rate hikes, following last month's extraordinary meeting, which decided to raise rates for the first time in three years and nine months.
In India, the rise in consumer prices in April has risen to 7.8% due to the rise in prices of various things such as energy and food, exceeding the target limit of 6%.
"The war in Europe has been prolonged and food and energy prices have continued to rise, leading to global inflation. Inflation has surged in India and is beyond tolerance," said Reserve Bank of India Governor Das, who met online. ", He emphasized the aim of curbing the rise in prices.
Inflation is expected to continue to exceed the target by the end of the year, suggesting the possibility of further rate hikes.
As Russia's military invasion of Ukraine continues to inflate globally, central banks in each country are rushing to tighten monetary policy.