27-Jan-2011 11:30 AM

India's Central Bank raises interest rates and inflation forecast

India's Central Bank raised the benchmark interest rate from 6.25% to 6.5%, marking a two-year high, and raised the country’s inflation forecast (Bloomberg, 25-Jan-2011). The RBI expects the benchmark wholesale-price inflation rate to reach 7% by 31-Mar-2011 more than its early projection of 5.5%.