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India's central bank has raised interest rates for the third time this year in an unscheduled announcement. The move comes as inflation pressures outweigh risks from Europe's sovereign-debt crisis.
The Reserve Bank of India increased the reserve repurchase rate to 4 percent from 3.75 percent and repurchase rate to 5.5 percent from 5.25 percent. India made the hike even as most central banks in Asia Pacific are keeping borrowing costs on hold.
The rise follows the government's increase on gasoline and diesel prices on June 25th, adding to inflationary pressures. Australia, South Korea, Indonesia, the Philippines and Thailand kept rates unchanged last month to gauge the impact of the Greece-led debt crisis.