(L-R): Deputy Governors K C Chakrabarty, Shyamala Gopinath, RBI Governor D Subbarao, Subir Gokarn along with Anand Sinha, Deputy Governor RBI arriving for the credit policy meeting in MumbaiRBI raised interest rates by a sharper-than-expected 50 basis points (bps) on Tuesday and said fighting inflation is its priority, even at the expense of short-term growth.The rate rise was its ninth since March 2010, and exceeded market and economists' expectations for a 25 bps rise, although the case for stronger action had been building since March headline inflation reached nearly 9%.KEY POINTS:- Repo rate , the short-term lending rate, up 50 bps at 7.25%- Reverse repo rate, the short-term borrowing rate, up 50 bps at 6.25%- Cash reserve ratio, the level of deposits that commercial banks must keep with the central bank, unchanged at 6%(Picture by Kamlesh Pednekar)

May 3: RBI rates fly up 50 bps

Bankers with RBI Governor D Subbarao for the RBI credit policy meeting in MumbaiASHUTOSH DATAR, ECONOMIST, IIFL, MUMBAI:"No real surprise on the central bank&#39;s thoughts on inflation. So we can now expect rates to be increased by at least another 50 bps by end-2011.JAY SHANKAR, CHIEF ECONOMIST - DIRECTOR, RELIGARE CAPITAL MARKETS, MUMBAI:"We believe that the markets will take this faster tightening positively. However, inflation is likely to peak only at around 12% around Sept-Oct. The impact of higher oil prices still have to be factored in the headline numbers. This is a serious downside risk to our FY12 growth estimates."Current elevated rates of inflation pose significant risks to future growth," RBI Governor said.(Picture by Kamlesh Pednekar)

Bankers with RBI Governor D Subbarao for the RBI credit policy meeting in MumbaiASHUTOSH DATAR, ECONOMIST, IIFL, MUMBAI:"No real surprise on the central bank&#39;s thoughts on inflation. So we can now expect rates to b

An aeroplane prepares to land at an airport in New DelhiBudget airline GoAir is planning to raise about $150 million through a public offer to fund its operational expenses, two sources with direct knowledge of the matter told Reuters.The airline has hired Bank of America Merrill Lynch and Edelweiss Capital to manage the offering, said the sources, who declined to be named as the information was not yet public.The airline will file for the share sale shortly, they said.GoAir&#39;s chief executive officer Kaushik Khona declined to comment.GoAir is run by Go Airlines (India) Pvt Ltd, promoted by the Wadia group which also runs textiles firm Bombay Dyeing and Manufacturing Co(Pictures by Reuters)

An aeroplane prepares to land at an airport in New DelhiBudget airline GoAir is planning to raise about $150 million through a public offer to fund its operational expenses, two sources with direct knowledge of the matter told Reuter

A crane unloads coal from a ship at Adani Cargo Port at Dahej in GujaratAdani Enterprises has agreed to buy Abbot Point Coal Terminal in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas markets, a unit of the Indian firm said on Tuesday.Indian firms are eyeing coal assets overseas to supply power plants in India, looking to benefit from the energy-hungry nation&#39;s aim to halve its nearly 14% peak-hour power deficit within 2 yearsThe Abbot Point Coal deal is one of the largest acquisitions of an Australian asset by an Indian company since Adani acquired Linc Energy&#39;s Galilee coal project for $2.7 billion last August.

A crane unloads coal from a ship at Adani Cargo Port at Dahej in GujaratAdani Enterprises has agreed to buy Abbot Point Coal Terminal in Australia for $2 billion in an all-cash deal to tap into growing coal traffic in overseas market

A labourer cleans a Bharti Airtel advertisement billboard installed on a truck in KolkataIndia&#39;s top two mobile phone carriers, Bharti Airtel and Reliance Communications, are expected to report lower quarterly profits, with investor focus firmly on a probe into a multi-bn dollar telecoms licensing scandal.Easing competition in the world&#39;s fastest-growing market with about 800 mn subscribers has been good news for companies after a vicious price war had led to sharp cuts in voice call prices.Companies including Bharti and Reliance Comm have recently started rolling out third-generation (3G) networks and are betting on the pick up of data services to boost margins

A labourer cleans a Bharti Airtel advertisement billboard installed on a truck in KolkataIndia&#39;s top two mobile phone carriers, Bharti Airtel and Reliance Communications, are expected to report lower quarterly profits, with investor