Sunday, 01 June 2014 - 19:08
India central bank holds first meeting with Modi in power
India's central bank holds its first monetary policy-setting meeting this week amid speculation its hawkish stance could bring it into conflict with the pro-growth policies of the new prime minister, Narendra Modi.
Analysts say the central bank's strong anti-inflation policies may clash with Modi's aim of reviving an economy which grew by 4.7 per cent last year -- the lowest level in nearly a decade, and half the rate seen during India's boom years.
Central bank chief Raghuram Rajan, a former International Monetary Fund chief economist, has hiked interest rates three times since taking over the helm last September.