India looks set to raise rates in a bid to combat inflationary pressure, but market experts are hoping this won’t be the case as economic data is showing signs of a slowdown in growth.
Most analysts in India are predicting a 25 basis points (bp) hike this week as inflation is running high. The prime minister’s economic advisor said last week that wholesale price inflation had reached “unacceptable” levels.
RBI has been aggressive in terms of monetary tightening. Since March 2010 Reserve Bank