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India’s New Central Banker Made A Shock Rate Hike, And The Stock Market Tanked
Salil Panchal, AFP 21 minutes ago 87
India’s new central bank governor marked his first policy meeting Friday with a bold decision to hike interest rates, wrong-footing analysts and leading to sharp falls on the stock market.
Reserve Bank of India (RBI) chief Raghuram Rajan, who had warned he was prepared to be unpopular, ordered a rise in the benchmark interest rate from 7.25 to 7.50 percent at a mid-quarter policy review in India’s financial centre Mumbai.