India's central bank has again raised its key interest rate in an effort to temper the country's high inflation.

The Reserve Bank of India on Tuesday increased the repurchase, or repo rate, by 50 basis points to 8 percent. The repo rate is the rate at which it lends to commercial banks.

It also raised the reverse repo rate, at which the central bank borrows from commercial banks, to 7 percent.

However, the central bank maintained its economic growth forecast of 8 percent through March 2011.

This is the 11th time that India has raised interest rates since March of last year.

India's annual inflation rate rose to 9.4 percent in June.