Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

India Must Raise Borrowing Costs, Prime Minister’s Aide Says

India’s central bank must raise borrowing costs to cool inflation, Prime Minister Manmohan Singh’s top economic adviser said, four days before the next monetary policy announcement.

“Given the persistent high inflation, we recommend tightening of the monetary policy,” Chakravarthy Rangarajan, chairman of the Prime Minister’s Economic Advisory Council, said at a press conference in New Delhi today.

Governor Duvvuri Subbarao is under pressure to raise interest rates on July 27 to tame prices in India, where three in four people live on less than $2 a day. The benchmark wholesale-price inflation rate has remained over 10 percent for five straight months.

Subbarao has increased rates three times since mid-March by a quarter-point each. The benchmark reverse repurchase rate is 4 percent and the repurchase rate is 5.5 percent.

India’s wholesale-price inflation rate rose 10.55 percent in June after climbing to a 19-month high of 11.23 percent in April.

Ten-year government bond yields were little changed at 7.67 percent at 3:30 p.m. in Mumbai after climbing earlier today to 7.69 percent, their highest level in more than a month. The Bombay Stock Exchange’s Sensitive Index rose 0.1 percent.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.