RBI hikes reserve ratio on back of price fears

The Reserve Bank of India has taken emergency steps to tackle burgeoning inflation just 12 days before its scheduled monetary policy meeting.

The Reserve Bank said on Thursday that it would raise the cash reserve ratio, the proportion of a commercial bank's deposits that must be held in central bank coffers, by half a percentage point in a bid to cool the economy and temper perceptions of further price pressures.

"In light of the current macroeconomic, monetary and anticipated liquidity condit