India Increasing Rates Now Would Be ‘Big Mistake,’ Mobius Says
- Most economists expect RBI to raise borrowing costs Aug. 1
- The RBI targets inflation, which has moved higher recently
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India’s central bank will make a “big mistake” if it raises interest rates this week, according to veteran emerging markets investor Mark Mobius.
His view goes against the crowd. Most economists in a Bloomberg News survey expect the Reserve Bank of India to raise the report rate by 25 basis points on Aug. 1, a second hike in eight weeks. The six-member monetary policy committee headed by Governor Urjit Patel began its discussions today.