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India: Will RBI Tightening Derail Growth?
[private][private]The Reserve Bank of India (RBI) has tightened again, raising the repo rate by 50 basis points. More importantly, the bank has outlined in clear terms a plan of action that, at least on the surface, looks like an open-ended tightening strategy, which implies a bet that current signs of slower growth do not point towards a fundamental change in the balance of risks away from inflation and towards recession.
5-3-11–EMG INDICATORS AND INSIGHTS _India’s Inflation and Monetary Policy_[/private][/private]