India tightens monetary policy further with inflation 4.41% in mid-July

MUMBAI, July 31, 2007 (AFP) - The Reserve Bank of India on Tuesday hiked its cash reserve ratio for banks by 50 basis points to seven percent, but kept short-term borrowing rates unchanged.
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The central bank said in a quarterly review that while inflation had fallen below its five percent forecast for the year to March 2008 from nearly seven percent earlier this year, commodity and asset price rises remained a concern.
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"While inflation has been steady, inflationary pressures remain and are more persistent than before, along with high commodity and asset prices," the bank's governor Y.V. Reddy said in a statement. Inflation accelerated to 4.41 percent in the latest data for the year to July 14, from 4.

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27 percent the previous week.
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