RBI went on a rate hike spree

GDP growth slowed, industrial production numbers contracted, capital market activity declined. The BSE-Sensex was also down since the start of the year. But, this is probably the only graph related to the Indian economy which had a positive slope in 2011. Seven rate hikes were implemented by the Reserve Bank of India in 2011. This followed six in 2010, in an attempt to curb inflation. Now with inflation slowing, the central bank has signaled the end of the monetary tightening by hitting the pause button in December. We are now looking forward to a few rate cuts next year.