RATE HIKE: India's central bank raised its key interest rate for the second time in two months Tuesday, underlining the determination of its new chief to control inflation despite concerns that economic growth could slow more.
DETAILS: Reserve Bank of India Gov. Raghuram Rajan said the benchmark interest rate was raised by a quarter percentage point to 7.75 percent. He said it was "important to break the spiral of rising price pressures to curb the erosion of financial saving and strengthen the foundations of growth."
THE RECORD: India's September wholesale inflation rose to 6.5 percent, well over the RBI's target of 4.0 percent to 4.5 percent. Consumer price inflation, which factors in volatile food prices, was even higher at 9.8 percent in September.
- Investment & Company Information
- Reserve Bank of India
- Raghuram Rajan