Australia and India hike interest rates

Australia and India have both raised interest rates by 0.25% on escalating inflation fears.

The Reserve Bank of Australia made its first rate hike since May, surprisingly raising rates from 4.5% to 4.75%. India's Reserve Bank raised the repo rate, the rate at which it lends to banks, to 6.25% from 6%. While it was the fifth rate hike this year, the governor of the Indian central bank says the chance of any further near-term increases are "relatively low". Australia had a series of rate hikes up until May, after it emerged as the only major developed economy to avoid a recession during the downturn. "The initial reaction sent the Aussie dollar up 1%-1.5% because it was ...