3 Jul 2010

Interest rates up in India

6:08 am on 3 July 2010

The Reserve Bank of India has raised key interest rates by a quarter of a percentage point in an attempt to curb double-digit inflation.

The BBC reports the rise follows two raises in April and a surprise rise in inflation to 10.2% in May.

The repo rate - the rate at which the central bank lends to commercial banks - was raised to 5.5% from 5.25%.

The reverse repo - the rate it pays to banks for deposits - was also raised to 4% from 3.75%.