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Inflation to be higher than initial projection: RBI

A fisherman arranges fishes kept for drying at a fishing harbour in Chennai August 30, 2013. REUTERS/Babu/Files

REUTERS - Inflation will be higher than initially projected over the rest of the year, in the absence of an appropriate policy response, the Reserve Bank of India said in its monetary policy review on Friday.

The RBI unexpectedly raised its policy interest rate by 25 basis points on Friday, but rolled back some of the measures it had implemented to support the battered rupee.

(Reporting by Mumbai newsroom; Editing by Prateek Chatterjee)