RBI moves to counter "intolerable" inflation

The Reserve Bank of India looked to assert its inflation-fighting credentials on Tuesday, raising its policy rate and reserve ratio, and warning of regulatory action if financial institutions continue to lend excessively.

The Reserve Bank increased its benchmark repo rate and cash reserve ratio to 9%. The benchmark repo rate rises half a point from 8.5% immediately, the reserve ratio by a quarter point for the fortnight beginning 30 August.

The central bank said that the policy decision was

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