THE RESERVE BANK OF INDIA MIGHT INCREASE THE REPO RATE AND THE LENDING RATES OF THE BANKS WILL ALSO GO UP.
The rate increase is its eleventh since March 2010, making the RBI one of the most aggressive inflation fighters among central banks.
This has taken the market by surprise as most analysts expected the central bank to be more dovish and only announce a 25 basis point repo rate hike given the threat to India’s industry growth due to increased interest rates.