Reserve Bank of India (RBI) governor Raghuram Rajan today caught out many observers by hiking interest rates at a time when the Indian economy is recuperating from arguably its toughest economic patch since the early 1990s.
The RBI raised the repo rate to 7.5%, contrary to the wishes of the country's business community, which had predominantly been calling for a cut – citing inflation pressures and looming Federal Reserve tapering.
"Recognising that inflationary pressures are mounting and determ
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