The Reserve Bank of India unexpectedly raised its key interest rate and its cash reserve ratio on Wednesday, citing a need to withdraw the Covid-19 pandemic-triggered monetary stimulus provided two years ago, amid recent acute inflationary pressures due to a global surge in food and commodity prices and the supply bottlenecks caused by the war in Ukraine.
The Monetary Policy Committee unanimously decided to raise the policy repo rate by 40 basis points to 4.40 percent with immediate effect, RBI Governor Shaktikanta Das said in a virtual press conference following an unscheduled rate-setting session.
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May 15, 2026 15:25 ET Apart from the confirmation of Kevin Warsh as the next Fed chair, the main news on the economics front this week included key price data from the U.S. and the first quarter economic growth figures from major economies. Both consumer prices and producer costs have started to reflect the effect of supply shocks due to the Middle East conflict. In Europe, GDP data was in focus, while inflation data from China dominated the news flow in Asia.