The Reserve Bank of India (RBI) on Friday raised the key interest rate by 50 basis points, the fourth straight increase since May. After the latest hike, the repurchase (repo) rate stands at 5.90 per cent.

Announcing the rate hike, RBI Governor Shaktikanta Das said the world is in midst of third major shock from aggressive monetary tightening by central banks.

The central bank's monetary policy committee (MPC) increased the key policy rate to cool off stubbornly high retail inflation that has stayed above the RBI's upper tolerance limit of 6 per cent.