News Summary: Indian central bank hikes rate

News Summary: India's central banker hikes key interest rate for 2nd time despite weak growth

Associated Press
News Summary: Indian central bank hikes rate
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Reserve Bank of India (RBI) Governor Raghuram Rajan adjusts his glasses as he attends the second quarter review of monetary policy for 2013-14 at the RBI headquarters in Mumbai, India, Tuesday, Oct 29, 2013. India's central bank raised its key interest rate for the second time in two months, underlining its determination to control inflation despite concerns economic growth could slow further.(AP Photo/Rafiq Maqbool)

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.

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