January 25th, 2011
Econintersect: The RBI (Reserve Bank of India) has raised repo and reverse repo rates by 25 basis points each. The increases (to 6.50% repo and 5.50% reverse repo) came as RBI raised to 7% (from 5.5%) the inflation forecast for March. Follow up:
Follow up:Prime minister Manmohan Singh has been increasingly criticized for increasing inflation at the consumer level. From The Times of India:
Global Economic Intersection has had recent analysis and discussion of inflation problems in India. Ajay Shah (January 25) says that "India has an inflation crisis" and Sunil Chandra (December 27, 2010) characterized "RBI holding a tiger by the tail."
Sources: The Times of India and GEI Analysis (Ajay Shah and Sunil Chandra).