Mixed reaction to RBI’s decision to hike rates

The central bank’s second unscheduled interest rate rise was broadly expected, however, Indian economist and market pundits feel that the RBI’s governor Yaga Venugopal Reddy did not keep his word of taking a “determined and calibrated”action against inflation.

The general mood in Mumbai is that a 50 bp increase was exaggerated, as economist fear that it will hurt the country’s growth rate.