RBI hikes at unscheduled monetary policy meeting
India joins race to tighten policy, amid “vortex” of economic forces
The Reserve Bank of India hiked its policy rate at an unscheduled meeting today (May 4), joining a growing movement of central banks that are implementing tighter policy.
Governor Shaktikanta Das said the additional meeting reflected the central bank’s concern that “second-round effects” could begin to set in. High commodity prices are feeding a rise in inflation expectations worldwide, and the RBI hopes that hikes will prevent expectations becoming unmoored.
Today’s 40 basis point hike brings
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