India again increased the interest level

Viliyana Filipova — Mon, 26 Jul 2010 05:20:04 +0000

The RBI decided to increase the base rate in the country with a quarter point to 5.75 percent. This is the second increase in interest within one month, the goal of tightening monetary policy to combat inflation. Over the past five months the appreciation of life in India is two-digit, and in July is expected to increase producer prices by 11 percent annually, Air Force forward. With a major contribution to this rise in prices of food and fuel. Last year, India became a victim of the biggest floods for the past 37 years. This significantly reduce agricultural harvests and the prices went up, the agency adds. Against the backdrop of high inflation in India and the government expects strong economic growth of 8.5 per cent this year. Today it became clear that India will also begin conducting stress tests of the banking system. Unlike the U.S. and Europe, however, the Government plans to introduce a regularity and banks to be tested every six months.
The Indian Central Bank RBI should be careful with the stress tests, because they can shake the economy if made in the inproper moment.

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India again increased the interest level