INDIA

The potential future Governor of the RBA, Philip Lowe, spoke yesterday at great length about the continued growth in China and India and the link in our growth levels moving towards China and away from USA. He also talked about the increasing influence India could potentially have. It's timely therefore that India, in response to it's continued strong growth, lifted rates more than expected last night. Their repo rate went up by 25 basis points and the reverse repo rate by 50 points (25 was expected for both). It's the fifth time this year. The move was to step inflation and normalise their levels of growth.