Though the two economies are different, and the two have pursued different monetary policies, the US and India are both facing the same situation: inflation.
Raising the reverse rate one quarter point won't slow down inflation, but it makes everybody feel better.
* * * * * J B K * * * * *
San Francisco
India's central bank may raise interest rates for the second time in a month to tame the fastest inflation among Group of 20 nations.
The Reserve Bank of India will probably increase the reverse repurchase rate to 3.75 percent from 3.5 percent and the repurchase rate to 5.25 percent from 5 percent, according to the median forecast of 25 economists in a Bloomberg News Survey. The announcement is due at 11:15 a.m. in Mumbai tomorrow.
http://www.bloomberg.com/apps/news?pid=20601068&sid=az.3AvgKokm4
