Two weeks back, Australia became the first country in the world to start the reversal of bank rate reduction. The Australian central bank raised the bank rate by 25 basis points and had also indicated that there could be more interest rate rises in the near future.
Now the Indian central bank has tightened the interest rates in an indirect form, by raising the statutory liquidity ratio of banks by a massive 100 basis points. The central bank has also indicated that there could be more tightening measures in the near future, based on inflation movements.
India starts tightening the interest rate