The fastest growth in the world puts India on track for a rate hike

India's economic growth is accelerating in an environment of rising price pressures, setting the stage for an increase in the interest rate next week.

Growth accelerated to 7.7 percent in the fourth quarter of the financial year ending March 31, government data showed on Thursday, the fastest pace of any major economy. That is in addition to calls to Governor Urjit Patel to activate the rate at the June 6 monetary policy meeting, and follow the central banks in emerging markets from Argentina to Indonesia that have intensified measures to curb flows and curb the defeat in their currencies. [19659002] "After Indonesia and the Philippines adjusted the rate upwards, we believe that the central bank of India will do the same and start normalizing the policy," said Shashank Mendiratta, an economist at ANZ Banking Group in Bangalore, which predicts a rise of 25 basis points next week. . "Inflation will remain above 4 percent until 2018."


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