India's central bank raised today its repo rate (lending rates) by 25 basis points to 7.50% as expected. It also raised the reverse repo rate (the rate the central bank borrows from banks) by 25 basis points to 6.50%.

Inflation remains a top priority in India, and this move comes as inflation persists at uncomfortable levels. However such a decision increase worries about growth that is likely to slowdown on the short term.