Reserve Bank of India Hikes Rate 25bps to 8.50%

The Reserve Bank of India [RBI] raised its repo rate by 25 basis points to 8.50% from 8.25% and raised the reverse repo rate to 7.50% from 7.25%. The RBI said: "both inflation and inflation expectations remain high. Inflation is broad-based, and is above the comfort level of the Reserve Bank. We expect these levels to persist for two more months. There are potential risks of expectations...