India Unexpectedly Raises Rate as Rupee Risks Inflation Goal
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India’s central bank unexpectedly raised its key interest rate, signaling it’s ready to implement the most sweeping changes in its 78-year history to fight the fastest consumer-price gains in Asia.
Governor Raghuram Rajan boosted the repurchase rate to 8 percent from 7.75 percent, the Reserve Bank of India said today. Only three of 45 analysts in a Bloomberg News survey predicted the move, with the rest expecting no change. It came five days after Finance Minister Palaniappan Chidambaram offered a reminder that the central bank has a duty to help growth.