MUMBAI Jan 28 The Reserve Bank of India
unexpectedly raised its policy interest rate on Tuesday by 25
basis points but said that if consumer price inflation eases as
projected it does not foresee further near-term tightening.
The RBI raised its policy repo rate by 25 basis
points to 8.00 percent. Most economists in a Reuters poll
conducted last week had expected no change in rates.
However, expectations for a rate hike had increased after a
central bank panel proposed to make the consumer price index
the main inflation benchmark.
(Reporting by Tony Munroe and Suvashree Dey Choudhury; Editing
by Jacqueline Wong)