India starts to tighten monetary policy
India’s central bank took the first steps to unwind its ultra-loose monetary policy adopted to counteract the ravages of the global financial crisis. The Reserve Bank of India tightened emergency liquidity support measures and raised its inflation forecast. The move, which triggered a sell-off on the Bombay Stock Exchange, paves the way for an increase in interest rates early next year as Asia’s third-largest economy shrugs off the economic downturn.
