Comment: RBI sounds warning call

The Reserve Bank of India (RBI) raised interest rates by 25 basis points on 25 July. The central bank warned that the higher oil prices were having a "permanent" effect. Rapid credit growth and rising risk-premia were also top of the list of concerns. Comments from the central bank suggest that this rate rise, hot on the heels of June's surprise hike, is unlikely to be the last for the year.

COMMENT BY CENTRALBANKNEWS

In delivering the first quarter review of the monetary policy, the governor of

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