With softening economic indicators and rising inflation, Reserve Bank of India (RBI) Governor Raghuram Rajan will be faced with a tough decision at the central bank’s policy meeting on Wednesday.
According to economists, Rajan will prioritize tackling inflation by lifting the benchmark policy rate by 25 basis points to 8 percent – the third rate hike in as many meetings, reversing all of the rate reductions earlier in 2013.
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