{"id":14819,"date":"2010-11-02T15:28:44","date_gmt":"2010-11-02T19:28:44","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=14819"},"modified":"2010-11-02T15:28:44","modified_gmt":"2010-11-02T19:28:44","slug":"reserve-bank-of-india-raises-interest-rates-by-25-basis-points","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/02\/reserve-bank-of-india-raises-interest-rates-by-25-basis-points\/","title":{"rendered":"Reserve Bank of India raises interest rates by 25 basis points"},"content":{"rendered":"<p><strong>By FxNewsIndia<\/strong> &#8211; The Reserve Bank of India today raised their lending and borrowing interest rates by 25 basis points in a bid to contain inflationary pressures in the Indian economy. The rate increase brought the bank&#8217;s lending repo rate to 6.25 percent and the reverse repo rate to 5.25 percent while leaving the cash reserve ratio unchanged at 6 percent. Today&#8217;s rate decision was widely expected by market forecasters and marks the sixth time this year that the bank has increased their rates.<\/p>\n<p>Central Bank governor Dr. D. Subbarao said in the bank statement announcing the policy decision that inflation was &#8220;well above the comfort zone of the Reserve Bank&#8221; and &#8220;significantly above its medium-term trend&#8221;.<\/p>\n<p>The bank statement characterized the move as being &#8220;moderate enough not to disrupt growth&#8221;and targeted to contain the rising inflationary expectations which &#8220;may be aggravated by the structural nature of food price increases&#8221;.<\/p>\n<p>Governor Subbarao also highlighted that growth in the Indian economy &#8220;is operating close to the trend growth rate&#8221; and the &#8220;baseline projection of real GDP growth for 2010-11, for policy purposes, is retained at 8.5 per cent&#8221;.<\/p>\n<p>Despite a global economic outlook that is &#8220;fragile and uneven&#8221;, the RBI believes that &#8220;domestic growth drivers are robust which should help absorb to a large extent the negative impact of any slowdown in global recovery.&#8221;<\/p>\n<p><a href=\"http:\/\/www.rbi.org.in\/scripts\/BS_PressReleaseDisplay.aspx?prid=23360\" target=\"_blank\"><span style=\"text-decoration: underline;\">Read the full policy statement here. <\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Reserve Bank of India today raised their lending and borrowing interest rates by 25 basis points in a bid to contain inflationary pressures in the Indian economy&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14819","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=14819"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/14819\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=14819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=14819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=14819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}