India raises interest rate to 5.90% to tame inflation

NEW DELHI (AP) — India’s central bank has raised its key interest rate to 5.90% and said developing economy were facing slowing growth, elevated food and energy prices, debt distress and currency depreciation. The bank’s governor projected inflation at 6.7% in the current fiscal year. The bank slashed the real economic growth forecast to 7% for the fiscal year from 7.2% forecast in August. Bank Governor Shaktikanta Das said the world has been confronted with one crisis after another, but India has withstood shocks from the coronavirus pandemic and the conflict in Ukraine.