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Wednesday, January 29, 2014

Reserve Bank of India raise its key policy repo rate by quarter.

The Reserve Bank of India has unexpectedly increased its key policy repo rate by 25 bps to 8%, citing projections that CPI will remain high. Inflation was 9.9% in December. However, the RBI said that if inflation eases as expected, it doesn't believe it will need to tighten further. The focus on CPI indicates that the RBI could adopt a proposal to set an inflation target.

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