India raises interest rate to 5.4%, in 3rd hike since May

ASHOK SHARMA
Associated Press

NEW DELHI (AP) — India’s central bank has raised its key interest rate by a half percentage point to 5.4% in its third such hike since May as it focuses on containing inflation. Reserve Bank of India Governor Shaktikanta Das projected that inflation would reach 6.7% in this financial year. In a statement after a meeting of the bank’s monitoring committee, he said the global economic and financial environment has deteriorated with the combined impact of monetary policy tightening across the world and the war in Ukraine raising risks of a recession. Das projected 7.2% economic growth for India in this fiscal year.