Continuing with
its anti-inflationary stance, the Reserve Bank of India (RBI) has raised the
benchmark interest rates by 25 basis points on Friday, while keeping CRR rates
unchanged.
The
decision comes as the authorities struggle to control near double-digit inflation, which
is uncomfortably high for more than two years.
The repo rate now
stands at 8.25%, while the reserve repo gets adjusted to 7.25%. The CRR remains
unchanged at 6%.
The RBI has been one of the most aggressive central banks in
the world, however, price pressures still remain high, mainly due
to strong demand pressures that have spread from food to other
commodities.
The wholesale price index, India's main inflation gauge,
rose 9.78% in August, higher than the median forecast for a 9.6% rise in a
Reuters’s poll and above the 9.22% recorded for July.
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