News Directory

India To Continue "Exit Policy"

MUMBAI, KOMPAS.com - After hoisting rates last weekend, India's central bank will continue the policy to get out of the crisis. Central Bank Governor Duvvuri Subbarao said, would be better to take this step and continue the strategy to exit from the crisis. "Although, we may have to sacrifice short-term economic growth," he said.

India first imposed a strict economic policy than other developing countries. "Our inflation surge worse than the others," said Subbarao.

India's central bank, the Reserve Bank of India was hoisted borrowing costs and repo rates by 25 basis Friday (19/3/2010) and, to keep the inflation rate and reduce the risk of a hard decline.

India to follow Australia and Malaysia, which raised interest rates this month. Meanwhile, Norway and Israel have done the same thing since the end of last year.

Meanwhile, central banks belonging to the G-7, The Federal Reserve and European Central Bank waiting for more kongret evidence of recovery, before they began to hoist the cost of borrowing. Canada became the only country in the G-7 who have moved interest rates after data showed inflation rate more quickly. (J. Ani Kristanti / Cash)