The Reserve Bank’s Monetary Policy Committee had its scheduled meeting for June over the last couple of days and made some unexpected announcements. India’s central bank surprised the market with a quarter-point increase in benchmark interest rates — the first spike in four years — in the face of pressure from soaring crude and commodity prices. The bank retained a neutral stance, indicating it would remain flexible in its responses to challenges without hurting economic recovery.

The RBI also raised the inflation forecast for the fiscal year even as core inflation held firm, despite an easing in the threat from food prices. It retained growth estimates for the year as investment demand aids economic expansion.

The six-member Monetary Policy Committee, or MPC, voted unanimously for the rate increase and expressed concerns about the turbulence in global financial markets.