The Reserve Bank of India also increased the repo rate by 25 basis points at its previous meeting, after hiking a surprise 50 basis points at its previous meeting to 8.00%, having increased 25 basis points in June, and 50 basis points during the May meeting. India's key inflation measure, the wholesale price index, increased 9.72% in September, compared to 9.78% in August, 9.22% in July, 9.44% in June, 9.06% in May, 8.66% in April, and 8.98% year on year in March, exceeding the Bank's previous estimate of 8%.
India reported annual GDP growth of 7.7% in the June quarter, compared to 7.8% in the March quarter this year, and 8.3% in the previous quarter. The RBI revised its growth projections down for 2011-12 to 7.6 percent from 8.0 percent previously, due to downside risks. The Indian Rupee (INR) has depreciated about 11.5% against the US dollar so far this year, while the USDINR exchange rate last traded around 49.69