India jerks in policy reins to choke off ballooning inflation
The Reserve Bank of India (RBI) on Tuesday acted on signs price pressures are becoming entrenched by hiking its benchmark reverse repurchase rate by a more aggressive than expected 50 basis points, taking it to 4.5% with immediate effect.
Annualised wholesale price inflation (WPI), the most relevant measure for monetary policy, hit 10.6% in June, 0.4 percentage points up from the May figure. In addition, revised data for March and April has put inflation in those months at 11% and 11.2%
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