As expected by most economists and analysts, the Reserve Bank of India (RBI) on Wednesday raised the repo rate by a quarter percentage point to 6.5%, the second such hike in two months. The move makes money more expensive in the world’s fastest growing major economy, but the Indian central bank’s monetary stance remains unchanged—neutral. In some sense, it has frontloaded the rate hike to dampen inflationary expectations. Its GDP (gross domestic product) growth projection for the current year, however, remained unchanged at 7.4% but for the first half of next year, it has projected a marginally higher 7.5% GDP growth.

(Live Mint)