The
announcement, on May 4, for a 40 bp raise in the policy
Repo rate along with a 50 basis point rise in the cash-reserve
ratio by the Reserve Bank of India is claimed officially
as a measure to put a rein to current inflation, currently
fuelled by the rising food prices rising at 7.68%, oil
and fats at 18.79% and vegetables at 11.64% over the
same month.
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