RBI Governor Raghuram Rajan

RBI Governor Raghuram Rajan

Dhiraj Singh/Bloomberg

Raghuram Rajan, governor of the Reserve Bank of India (RBI), last week unexpectedly raised the repurchase rate by 25 basis points to 8 percent and signaled he is ready to implement inflation targeting in the most sweeping changes in the 78-year history of the RBI.