India Interest Rate

India Interest Rate

India increases interest rates for the first time in over 4 years - June 2018
Adrian Adrian

The Reserve Bank of India increased its interest rates by 25 basis points to 6.25, their reasoning was due to growing inflationary pressures caused by rising oil prices and recent financial turmoil.  

Analysts had already predicted a rise, but most were expecting this to occur in the next policy meeting in August due to inflationary pressure, and while the RBI have stated they are not starting a sharp tightening cycle, they are currently monitoring global markets due to the impact these have on India and emerging markets.  It is the first time in four and a half years that they have increased interest rates and the highest it's been since January this year.  The Bombay Stock Exchange index took the decision well closing up 0.9 percent at 35,178.0.

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