India Hikes Benchmark Lending Rate To 7.5%

The Reserve Bank of India lifted its key rate by a quarter-percentage point to 7.5%. Analysts were projecting the repo rate to remain at 7.25%. The Indian rupee dropped against the US dollar after the RBI decision. The dollar bought 62.5450 rupees up from 61.77 rupees late Thursday. The equity benchmark Sensex declined 382 points, or 1.85%, to 20,263.71.