NEW DELHI — India’s central bank raised its key interest rates to 4.9% on Wednesday, from 4.4%. This is the second increase in three weeks to curb inflation.

Shaktikanta Das, Governor of Reserve Bank of India, stated that the decision was made to curb price rises and reduce the impact of geopolitical tensions like the war in Ukraine.

Das stated that “upside risks to inflation…materialized earlier than anticipated.”

Wednesday’s rise follows a 40-basis point increase in May.

The central bank increased its 2022-23 inflation projection to 6.7%, from 5.7%, and maintained its forecast for growth at 7.2%.

The conflict in Ukraine is presenting “newer challenges every day, which is accentuating existing supply chain disruptions.” According to Das, this has led to high commodity, energy, and food prices.

According to official data, consumer spending has been affected by price increases. It reached an eight-year high in April at nearly 7.8%, which was almost double the average level.

India’s economy grew at 4.1% annually in the January-March quarter after 5.4% growth in its previous quarter. The economy experienced 8.7% growth in the 2021-22 financial years, which was slower than the 8.9% estimate by the government.