RBI to rise rates to tame down inflation

25 October 2011: The Reserve Bank of India will raise interest rates again on 25 October 2011 to control price rise despite slowing growth, but its job may get complex due to government's policies that are pulling the economy in the opposite direction and the wobbly global markets, indicates a report from the central bank.

The 12 increases in interest rates so far is slowing demand, but excessive spending by the government and a slide in the Indian rupee are neutralising tight monetary policy, says the Reserve Bank of India's report on Macroeconomic and Monetary Developments review for the second quarter.

Source: Economic Times