MUMBAI, June 11: India’s central bank on Wednesday raised a key short-term borrowing rate by a quarter percentage point to 8.0 per cent to battle inflation that analysts say may be headed to double-digit levels.

The Reserve Bank of India said it was raising its repo rate, at which commercial banks borrow funds from the central bank, from 7.75pc effective immediately.

“With a view to containing inflation expectations, it is essential to take appropriate action on an urgent basis,” the bank said in a statement.—AFP