RBI raises rates to tackle ‘uncomfortably high’ inflation
Central bank has been intervening to defend rupee, but governor insists reserves remain ample
The Reserve Bank of India raised its main rate by 50 basis points today, as it looks to ensure “uncomfortably high” inflation does not become entrenched.
The monetary policy committee voted unanimously for the hike, taking the rate to 5.4%. The committee stressed the need to ensure inflation expectations do not rise, and to contain second-round effects from wage and price increases.
“Consumer price inflation has eased from its surge in April but remains uncomfortably high and above the upper
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