Indian equity benchmarks on Wednesday plunged sharply in late deals after Reserve Bank of India (RBI) announced a hike in key interest rate. In a surprise move, RBI raised the repo rate by 40 basis points (bps) to 4.40 per cent in an off-cycle meeting today. Repo rate is the rate at which a central bank lends money to banks.
The U.S. Federal Reserve is also expected to raise rates by 50 bps when its meeting concludes later in the day.
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