The Reserve Bank of India (RBI) raised its key interest rate in an effort to curb inflation in the country.

The repo rate was raised by 50 basis points (bps) to 4.9%.

Experts polled by The Wall Street Journal had largely expected a 40 bps hike.

India’s inflation in April accelerated to the highest since 2014 at 7.79% year-on-year from 6.95% in March amid a jump in food prices. In May, RBI held an extraordinary meeting where it raised the repo rate by 40 bps. – To 4.4%.

India’s central bank has forecast inflation in the country at 6.7% in the current fiscal, which began in April. It had earlier forecast consumer price growth of 5.7%. RBI’s target for inflation rate is 2-6%.

The central bank maintained its forecast for India’s GDP growth in the current fiscal at 7.2%.