WisdomTree India Earnings Fund (NYSEArca: EPI) and other ETFs following Indian stocks were lower Friday after Reserve Bank of India unexpectedly raised a key interest rate in an effort to quell inflation.

Raghuram Rajan, the RBI’s new governor, boosted the repurchase rate by a quarter point to 7.5%, the first increase since 2011, Bloomberg News reports.

“It shows their clarity and seriousness in dealing with elevated inflation,” said Rajeev Malik, an economist at CLSA Asia-Pacific Markets.

The central bank cut by three-quarters of a percentage point the short-term interest rate that has had the most effect on bank lending rates lately, the New York Times reports. The RBI has two short-term interest rates.

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