Arab Today, arab today india hikes interest rates by 25 basis points
Last Updated : GMT 04:32:24
Arab Today, arab today
Arab Today, arab today

India hikes interest rates by 25 basis points

Arab Today, arab today

Arab Today, arab today India hikes interest rates by 25 basis points

Mumbai - AFP

India\'s central bank on Thursday raised its key short-term interest rates by 25 basis points its 10th hike in 16 months in a bid to tame high inflation stuck at \"uncomfortable levels.\" The Reserve Bank of India raised its repo rate at which it lends to commercial banks to 7.50 percent and increased the reverse repo -- the rate it pays to banks for deposits to 6.50 percent. The repo rate is now at its highest since November 2008. \"Inflation persists at uncomfortable levels and much above our comfort zone,\" the RBI governor Duvvuri Subbarao said in a statement released after bank policymakers met in Mumbai. The central bank decision came after data this week showed annual inflation accelerated to a higher-than-expected 9.06 percent in May, from 8.66 percent the previous month. This is well above the RBI target of 5.0-6.0 percent. Subbarao maintained a hawkish tone, saying a short-run slowdown in growth may be unavoidable as the bank maintains its \"anti-inflationary\" monetary policy stance. Analysts had expected the increase and say further hikes are still likely in coming months. India\'s Sensex opened lower before the meeting, as investors sold heavily in anticipation of a hike. The benchmark 30-share index on the Bombay Stock Exchange was 0.45 percent lower in early afternoon trade after the announcement. Interest-sensitive banking, real estate and auto stocks in particular were under pressure. The surge in the cost of living, triggered by spiralling food prices, rising global commodity prices and higher fuel costs, has been one of the biggest headaches for India\'s government. Economists say inflation has now spilled over into the general economy, pushing up wages and other costs. \"The headline inflation rate remains extremely sticky at around the double-digit mark,\" said Robert Prior-Wandesforde, India and South East Asia Economics head at Credit Suisse. Reducing prices has become a political priority for the Congress-led coalition in New Delhi, even as higher growth is seen as key to reducing crushing poverty in the nation of 1.2 billion. The government has delayed a decision to rise prices of diesel and kerosene, which is widely used in rural areas and is seen as the \"poor man\'s fuel\". A possible hike in diesel would stoke inflation further, as it is a widely used in the transport of goods and services across the country. The RBI on Tuesday said inflation was likely to face continued \"upward pressure\" from the impact of high oil and coal prices, government subsidy expenditure and wage rises. While inflation has remained stubbornly high, the series of rate hikes is starting to have an impact, with India\'s economic growth slowing to 7.8 percent in the three months to March its weakest pace in five quarters.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today india hikes interest rates by 25 basis points Arab Today, arab today india hikes interest rates by 25 basis points

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 13:43 2017 Sunday ,19 February

Local institutional buying lifts Oman shares higher

GMT 15:33 2017 Saturday ,18 February

Lock-up shares worth 39 bln yuan eligible for trade

GMT 09:49 2017 Saturday ,18 February

Qatar Stock Exchange Index Gains 190.17 Points This Week

GMT 09:15 2017 Friday ,17 February

Asia stocks retreat after week-long Trump rally

GMT 08:14 2017 Friday ,17 February

Bahrain Bourse daily trading report

GMT 21:28 2017 Thursday ,16 February

US Stocks End High on Tuesday

GMT 21:18 2017 Thursday ,16 February

Chinese Yuan Strengthens to 6.8632 Against USD Wednesday
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday