Indian central bank raises key rate.

As expected, the Reserve Bank of India has increased its key lending rate to 7.75% from 7.5%, having raised the rate in September by a quarter-percentage point also. However, the RBI reduced the marginal standing facility rate to 8.75% from 9%. Prior to the decision, data showed that wholesale inflation climbed to 6.46% in September, above the bank's target of 5%. The RBI warned that inflation will remain high in the coming months.