RBI joins global central banks, more hikes to follow

The Indian central bank has now gone back to the familiar script, in line with the global central banks

As widely expected, the Reserve Bank of India (RBI) on Wednesday raised its policy rate by half a percentage point to 4.9 per cent — part of a series of rate hikes that will follow to fight high inflation in Asia’s third-largest economy. This is the second rate hike since May 4, when the Indian central bank had raised its policy rate by 40 basis points (bps), from 4 per cent, its lowest ever. One basis point is a hundredth of a percentage point.

For sure, it will follow up Wednesday’s action in August as well as September and, probably