Wednesday, August 1, 2012

On hold for all the right reasons

Reserve Bank of India’s (RBI) policy review on Tuesday continued from where it had left off in June: holding rates on inflation concerns. This time it wasn’t as dramatic a decision as in June when the market had completely convinced itself that a rate cut was cast in stone. Rather with fears of inflation turning rabid on higher food prices given the weak monsoon, the market had resigned itself to no rate cuts this time............

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