India Bonds, Stocks Tumble as RBI Raises Rates in Emergency Meet

(Bloomberg) -- Indian bonds tumbled along with stocks after the monetary authority raised its key rate in an emergency move amid rising inflationary pressures and ahead of a Federal Reserve decision.

The yield on the benchmark 10-year bond rose as much as 30 basis points to 7.42%, its highest since 2019, after the decision. Stocks fell to a two-month low, while the rupee jumped.

The Reserve Bank of India raised its repurchase rate by 40 basis points to 4.40%, Governor Shaktikanta Das said in a statement, citing the need to keep inflationary pressures in check. It also raised the cash reserve ratio by 50 basis points. 

RBI’s move comes ahead of a Federal Reserve decision later in the session where the U.S. is expected to raise rates by 50 basis points.

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