Reserve Bank of India hikes the benchmark interest rates after more than 4 years

The Reserve Bank of India (RBI raised the key repo rate by 25 bps to 6.25 percent and reverse repo rate to 6 percent, at its monetary policy meeting held today.

The last RBI rate hike was in January 2014 and it took the markets by surprise. A Reuters poll had predicted that the RBI is expected to hold key rates in its monetary policy meet this week.