The Reserve Bank of India's key policy repo rate was raised by 50 basis points on Friday, the third increase in the current cycle to cool stubbornly high inflation that has remained above the central bank's tolerance band for six straight months. With June retail inflation hitting 7 per cent, economists polled by Reuters had expected the third rate hike in four months, but views were widely split between a 25 bps to a 50 bps increase.The monetary policy committee (MPC) raised the key lending rate or the repo rate to 5.40 per cent. "Inflation is projected to remain above the upper tolerance level of 6 per cent ... (full story)