India raises interest rates to 6.75%

The Reserve Bank of India has raised interest rates to fight rising consumer prices in the country.

The rise from 6.5% to 6.75% is the eighth rise in the past year. Rising food and fuel prices have threatened to slow growth in India's buoyant economy, with consumer prices increasing by 8.3% in February year-on-year. Prime Minister Manmohan Singh called inflation a "serious threat" to the country's economic growth. The Reserve Bank of India states: "After a slight moderation in January, headline WPI inflation reversed in February 2011, accompanied by a sharp increase in non-food manufactured products inflation. "As expected, the food article prices have declined substantially s...