A rate hike by stealth but measures are temporary4 min read . Updated: 16 Jul 2013, 11:47 PM IST
Once stability returns to the currency market, RBI will have to reverse these measures for growth momentum
The Monday late evening Reserve Bank of India (RBI) action is nothing but a rate hike by stealth, that too by a whopping 3 percentage points, ostensibly to iron out volatility in the currency market. The rupee hit its lifetime low of 61.21 per dollar on 8 July. Since then, it has recovered (it closed at 59.89 per dollar on Monday), but RBI is not convinced about the recovery in an extremely thin market.
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