The Reserve Bank of India has raised interest rates to 5.5 per cent
The central bank responded to inflationary pressures with a 25-basis-point rate rise, the first since 2023
from our correspondent Marco Masciaga
Aggiungi Il Sole 24 Oreai preferiti su Google
NEW DELHI – In a move that confirms the inflationary pressures on Asia’s third-largest economy, the Reserve Bank of India (RBI) on Wednesday morning followed the lead of the world’s major central banks and raised its benchmark rate for the first time since 2023, bringing it to 5.5 per cent (+25 basis points). The six members of the Monetary Policy Committee took the decision unanimously.
In a statement, the central bank also signalled the possibility of further rate rises, changing its stance from ‘neutral’ to ‘calibrated tightening’, but the governor Sanjay Malhotra stated that the extent and timing of any further rises would depend on the actual trend in inflation and economic growth.
India is facing even greater inflationary pressures than other major energy importers because, in addition to price rises linked to oil and gas prices, this year has seen further increases caused by climate change.
The light monsoon rains linked to El Niño have exacerbated price pressures in Asia’s third-largest economy and affected productivity in the agricultural sector, which employs nearly 45 per cent of the working-age population.
“It is clear that inflation and the outlook for inflation are not as favourable as they were last year,” explained RBI Governor Sanjay Malhotra, adding, however, that “the Indian economy has shown strength and its momentum remains widespread”.
