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India's central bank hikes reserve requirements

India's central bank hikes reserve requirements

India's central bank has hiked cash reserve requirements for lenders but left key interest rates unchanged as it tries to contain inflation without undermining an economic recovery.
The three quarters of a percentage point increase in the reserve requirement for banks to 5.75 percent was more than expected.
The Reserve Bank of India also raised its projection for economic growth for the fiscal year ending March from 6 percent to 7.5 percent. It says inflation will likely hit 8.5 percent by March.
India's economy is rebounding faster than expected, with 7.9 percent growth in the September quarter, but much of that has been driven by huge government spending.


Updated : 2021-04-12 08:43 GMT+08:00