India hikes unexpectedly to counter price surge

The Reserve Bank of India surprised markets by lifting its benchmark repurchase rate to 8% on Wednesday.

The unexpected move, which leaves rates at their highest level since March 2002, comes on the back of fears that inflation could hit double digits

Wholesale price inflation, a measure of factory-gate costs more closely watched than the consumer price index (CPI) because it tracks a wider range of goods, has surged from 4.36% in January to 8.24% on 24 May - a four-year high. Various measures

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