Business
India Hikes Interest Rates
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| India’s central bank raised a key interest rate for its short term loans to banks for the fifth time this year, signaling its intentions to fight against inflation, which rose by 8.5 percent in August.
The Reserve Bank of India raised the repo rate by a quarter percentage point to 6 percent and the reverse repo rate — the rate at which it borrows from commercial banks — by half percentage point to 5 percent. In a statement, the bank said, “Inflation remains the dominant concern. Essentially, inflation rates have reached a plateau, but are likely to remain at unacceptably high levels for some months.” India’s economic recovery is consolidating as the economy grew by 8.8 percent in August.
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