India's central bank raised interest rates for the second time in a month this morning and raised the amount lenders need to set aside as reserves in an attempt to slow spriraling inflation which is now running at a 13-year high. The repurchase rate was lifted to 8.5 percent from 8 percent, and the cash reserve ratio to 8.75 percent from 8.25 percent. The increase was the biggest since 2000 and followed a quarter-point rise on June 11. Before today, Reddy had raised the repurchase rate eight times in the past two and a half years and increased the cash reserve ratio seven times since December 2006 in an ongoing attempt to slow money supply growth and cool inflation. India's central bank also signaled it will keep raising borrowing costs if needed. The central bank said in a faxed ...

India's central bank unexpectedly raised interest rates for the first time in 15 months today, joining a global wave of monetary tightening to combat a surge in inflation sparked by food and energy costs. The Reserve Bank of India increased the repurchase rate to 8 percent from 7.75 percent with effect from today, according to a statement in Mumbai. The move came seven weeks before the bank's scheduled monetary policy meeting on July 29.