RE: down 5% today-here''s the reason March 30 (Bloomberg) -- India's central bank raised a key interest rate a month before its scheduled policy review because of a failure to bring down inflation from a near two- year high.
The Reserve Bank of India increased its overnight lending rate by a quarter percentage point today to a 4 1/2 year high of 7.75 percent. The Mumbai-based bank also raised banks' reserve requirements for the third time since December, and said it is shifting policy away from balancing inflation with economic growth to focusing solely on prices.