Basu favours pause in rate hike cycle
Basu favours pause in rate hike cycle
Updated on Friday, September 16, 2011, 15:38

New Delhi: Finance minister`s chief economic adviser, Kaushik Basu, said on Friday he would vote for a pause on rate hike in future, even as he admitted the country was facing difficult inflationary situation.

Basu`s comments came after the Reserve Bank of India (RBI) raised interest rates for the 12th time in 18 months and said it will persist with its anti-inflationary policy stance, even as growth slows in Asia`s third-largest economy.

Basu said he had expressed reservation about the latest rate hike.

The RBI lifted its policy lending rate, called the repo rate, by 25 basis points to 8.25 percent, in line with expectations.

Headline inflation for August rose to 9.78 percent, its highest level in more than a year, data showed on Wednesday.

Bureau Report

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