MUMBAI: India's central bank announced a surprise interest rate hike on Wednesday , as Asia's third-biggest economy reels from galloping inflation in the wake of the Ukraine war.
"Most alarmingly, persistent and spreading inflationary pressures are becoming more acute with every passing day." India is the world's largest importer of edible oils including palm oil and soya oil, which are trading at record highs. "By advancing the rate decision by approximately one month, the MPC has focused on preventing inflationary expectations from unanchoring in an increasingly uncertain environment."Last month, all six members of the RBI's monetary policy committee voted to hold the key rate unchanged at a historic low of four percent for the 11th straight meeting.