Thursday, March 17, 2011

Reserve Bank of India Lifts Rate 25bps to 6.75%

The Reserve Bank of India increased the repo rate by 25 basis points to 6.75 percent from 6.50% previously, the Bank also increased the reverse repo rate by 25 basis points to 5.75 percent. The move was driven by rising inflation, with the Bank raising its forecast for March WPI inflation to 8 percent from 7 percent, and maintained its growth forecast for the fiscal year at 8.5 percent. India reported annual headline inflation of 8.31 percent in February, faster than January's 8.23 percent.

1 comment:

  1. India's inflation situation appears to be much worse than that of China's, makes you wonder if India is doing enough...