Indian Rate Increase Sends Shockwaves

The Indian government last Friday made a decision that sent shock waves around the world markets. At the outset, it looks trivial – just a quarter of a percentage rise in key interest rates by a developing country. India’s central bank, the Reserve Bank of India, raised the so-called the repo rate – which is the rate at which the bank lends to financial institutions – to five percent, and … [Read more...]