India raises interest rates for first time in over three years

The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50 percent on Wednesday, according to reports by Euronews and AOL.co.uk. The decision marks the central bank's first rate increase in over three years as rising inflation caused by the war in Iran weighs on the national currency. [1][3]

All six members of the monetary policy committee voted in favour of the quarter-percentage-point hike, Euronews reported. The repo rate is the interest rate the central bank charges commercial banks for short-term loans, as described by Wikipedia. [1][7]

Consumers in India are feeling the pinch from the conflict involving Iran, PressTV reported. Middle East war pressures have lifted prices across Asia's third-biggest economy, according to Euronews. [1][4]

The policy move aligns India with several other central banks that have tightened monetary policy in response to global inflation pressures, Euronews reported. [1]