Business & Finance

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 P
Published Updated

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