India hints at fresh rate hike

MUMBAI, Oct 24 (AFP): India's central bank hinted Monday of another interest rate increase at a policy meeting this week, saying that inflation was "sticky", even as risks to growth had increased. The Reserve Bank of India (RBI) has increased interest rates 12 times since March 2010 -- the most aggressive tightening pace of any central bank globally -- and analysts expect a further hike at a scheduled meeting on Tuesday. "Even as growth moderates, inflation risks still prevail," the RBI said in its macroeconomic and monetary review. "Inflation remains a concern and will continue to occupy an important space in monetary policy setting." It added: "Growth risks have increased on global headwinds, while inflation continues to be sticky, adding to the complexity for monetary policy." The RBI has been battling to control inflation, which at 9.72 per cent last month, was the highest among all major economies.