RBI raises key rate to 5.5% after nearly 4 years
Business
The Reserve Bank of India (RBI) bumped up its key interest rate to 5.5%, the first hike in nearly four years, to help keep inflation in check.
But this move also sent government bond prices down and signaled that the RBI had shifted its stance to a "calibrated tightening" approach, with its next move likely to be a hike or a pause.
Bond yields close to 3-year high
With global oil prices climbing and other economic pressures building up, it looks like higher rates are here to stay for a while.
Bond yields have jumped close to a three-year high as markets react to international trends like rising US yields.
The RBI said it may continue using tools like bond sales and reverse repos to help manage these challenges.