Thursday, March 17, 2011

RBI set to hike rates despite Japan crisis

Events in Japan are expected to weigh on the mind of Reserve Bank of India governor D Subbarao while charting the course of action in his mid-term policy review on Thursday. However, the majority bet continues to be on a 25 basis point hike in policy rates.

Fears that quake would push Japan, the world's third largest economy, further into recession resulted in oil prices dipping more than $4 per barrel to $97.4 on Monday.

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