Emerging Asia Economics Update
India's monetary tightening still has far to go
The Reserve Bank of India (RBI) increased its two key policy rates today, as was expected. The economic upswing looks set to stay strong and high inflation has now developed into a big political problem as well as a major policy challenge. Rates are likely to be move up a further 100-125bp over the next 12 months and the next hike will probably happen in mid-September.
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