RBI Governor D Subbarao says need to raise rates to curb inflation



Tackling crisis:

The RBI Governor, Dr D. Subbarao, delivering a talk on "India and the global financial crisis: what have we learnt?" at GITAM School of International Business at Visakhapatnam on Monday. GITAM President, Mr M.V.V.S. Murthy, and the Vice-Chancellor, Mr G. Subrahmanyam

VISAKHAPATNAM: India needs to raise interest rates to restrain inflation, said Duvvuri Subbarao, governor of the Reserve Bank of India, on Monday. Restraining inflation will ensure medium-term economic growth is sustainable, he said in a speech on India and the global financial crisis.  The 10-year benchmark bond yield rose 2 basis points to 8.45 per cent after the governor's comments.  Last week, the central bank had raised interest rates by 50 basis points in a bid to tame inflation amid signs of slowing economic growth. It was the 11th rate increase since March 2010.

ET