The Reserve Bank of India on Thursday raised its benchmark rates by 25 basis points to 7.50 per cent, hiked reverse repo rates by 25 bps to 6.50 per cent in a move to arrest surging inflation in Asia's third largest economy.
Inflation rose higher than expected in the month of May. The WPI rose an annual 9.06 per cent pressuring RBI to tighten monetary policy further and at the same time arresting India's growth in the process. Higher borrowing costs, rising input prices and strict banking rules will make it hard for companies to take credit and in turn impede production activity going forward.
Inflation rose higher than expected in the month of May. The WPI rose an annual 9.06 per cent pressuring RBI to tighten monetary policy further and at the same time arresting India's growth in the process. Higher borrowing costs, rising input prices and strict banking rules will make it hard for companies to take credit and in turn impede production activity going forward.
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