Reserve Bank of India raise its key policy repo rate by quarter.

The Reserve Bank of India has unexpectedly increased its key policy repo rate by 25 bps to 8%, citing projections that CPI will remain high. Inflation was 9.9% in December. However, the RBI said that if inflation eases as expected, it doesn't believe it will need to tighten further. The focus on CPI indicates that the RBI could adopt a proposal to set an inflation target.