Reserve Bank of India Governor Raghuram Rajan may raise policy rates again after shocking markets by increasing them in only his first meeting, signalling he is willing to risk prolonging what is already the lowest economic growth in years in order to quash persistent inflation.
Raising the repo rate by 25 basis points to 7.50 per cent as India stumbles through its worst economic crisis since 1991 puts pressure on New Delhi to relieve supply-side bottlenecks in the economy, such as poor infrastructure, that keep inflation high even when demand is soft.
That is a big ask for a weak coalition government, which also faces a general election by May.
Read full article at http://profit.ndtv.com/news/economy/article-brace-for-bigger-emis-raghuram-rajan-may-hike-interest-rates-further-327518?pfrom=home-lateststories
Dont forget to share this post