Emerging Asia Economics Update
India hikes rates for last time in the cycle
While the Reserve Bank of India’s (RBI) decision to hike its repo rate by a further 25bp today was widely expected, what is more surprising is how explicitly it signalled that this is likely to be the last hike of the cycle. In fact, we expect slower growth and lower inflation to pave the way for the RBI to start cutting rates in the second half of 2012.
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