Published on Mon, Jul 26, 2010 at 17:43 | Source : Reuters
Updated at Mon, Jul 26, 2010 at 18:03
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RBI to unwind policy until inflation anchored
The Reserve Bank of India said on Monday that unwinding of loose monetary policy that started in October 2009 should continue until inflation expectations are firmly anchored and inflation is brought down.
The Reserve Bank of India said on Monday that unwinding of loose monetary policy that started in October 2009 should continue until inflation expectations are firmly anchored and inflation is brought down.
"With receding concerns relating to the recovery and given the emerging risks of generalised inflation, monetary policy measures have to continue the calibrated normalisation process," the Reserve Bank of India (RBI) said in a report a day before it is widely expected to raise interest rates by 25 basis points.
Of 20 economists polled by Reuters, 17 expect the central bank to raise the repo rate by 25 basis points on July 27 and 18 expect a similar jump in the reverse repo rate.
