India raises key interest rates in bid to curb inflation

India's central bank raised interest rates by a higher than expected 50 basis points in an effort to rein in runaway inflation, the BBC reported.

The Reserve Bank of India raised its main rate to 8% from 7.5%, the eleventh increase since March 2010, the news channel said.

"Actual inflation so far has been even higher than expected," the Reserve Bank of India said in the statement announcing its latest interest rate move.

"The recent increase in domestic administered fuel prices and the minimum support price for certain food items will also keep inflation under pressure," the bank added.

Analysts said that the bank's move was surprising, given recent hints that India's economic growth is slowing down.