RBI increases interest rates
Posted on: 16/Jul/2013 11:07:14 AM
Following a meeting between the Union Finance Minister P. Chidambaram and RBI (Reserve Bank of India) Governor D. Subbarao, the RBI has raised interest rates as of Monday. The move will strengthen the rupee against currencies such as the euro and the dollar. The lending rate of the RBI to other banks is now 10.25 per cent, up by 200 basis points.
‘The Rupee has depreciated markedly in the last six weeks. Countries with large current account deficits, such as India, have been particularly affected despite their relatively promising economic fundamentals. Against this backdrop, and the need to restore stability to the foreign exchange market the measures were announced’, said an official statement from the RBI.
