IMF Says India Can Raise Rates Gradually as ‘Conditions Ripe

The Indian economy is prepared to raise their interest rates as they identify themselves as one of the first countries to recover the from the economic recession. They look to a contractionary monetary policy that will assist the country recover from a 13-month high inflation rate and they are looking to be able to increase their reserves for investments. The Indian Central Bank has raised the reserve requirement to 5.75, indicating the steady recovery of the economy. Unfortunately it is difficult to compare this to the American economy because India's total economy is worth $1.2 trillion while our deficit alone exceeds that by $500 billion. However these are encouraging signs that the global economy is recovering and moving in a positive direction.