Fed's 17th increase leaves India with no choice

According to this article published Monday 3 July by Bloomberg, the Reserve Bank of India cannot afford to skip another quarter-point increase in July, with the Federal Reserve boosting rates last week.

"If Reserve Bank of India Governor Y.V. Reddy still decides to keep the policy on hold in July, he may be exposing the economy to unnecessary risks," it says.

"Inflation is gathering momentum, and unlike many emerging markets, tolerance for price increases is quite low in India."

"The July rate i