India Central Bank Hikes Interest Rates

Also reversing some emergency measures to back the rupee

India's central bank unexpectedly lifted its benchmark repo rate by a quarter point to contain inflation, while also partially reversing some of the emergency measures taken recently to support the rupee after the Federal Reserve postponed the tapering of bond purchases.

At his maiden monetary policy meeting held on Friday, Reserve Bank of India Governor Raghuram Rajan raised the repo rate to 7.50 percent from 7.25 percent and adjusted the reverse repo rate to 6.50 percent.