Economics

RBI Roils Markets With Surprise India Rate Hike Before Fed

  • Reserve Bank of India raises policy rate in out-of-cycle move
  • 10-year bond yields surge 30 basis points to most in 3 years
WATCH: India’s central bank unexpectedly raised its key interest rate by 40 basis points to 4.40% on Wednesday.  announced the move in an online briefing.Source: Bloomberg
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India’s central bank raised its key interest rate and moved to drain liquidity from the banking system in a surprise move Wednesday, sending bonds and stocks crashing, as it intensified the battle against inflation that’s outpaced its expectations this year.