India Central Bank monetary tightening affecting economic growth
NEW DELHI: The Indian central bank's monetary tightening is impacting the country's economic growth, Finance Minister Pranab Mukherjee told reporters on Friday, after the central bank delivered its 12th rate hike in the last 18 months.
The Reserve Bank of India lifted its policy lending rate, called the repo rate , by 25 basis points to 8.25 percent, in line with expectations, as it persisted in a fight with inflation that has proven mostly futile.
Headline inflation for August rose to 9.78 percent, its highest level in more than a year, data showed on Wednesday.
India's domestic demand driven economy grew 7.7 percent in the April-June period, its weakest pace in six quarters, but outperformed even gloomier predictions.
Copyright Reuters, 2011
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