India’s economy grew close to 9 per cent in the three months to the end of September, putting pressure on the central bank to continue its aggressive campaign of raising interest rates over the next two months.
The economy’s acceleration by 8.9 per cent in the third quarter, released on Tuesday, considerably surpassed analysts’ expectations that growth would fall short of the 8.8 per cent year-on-year recorded in April to June.
Some observers now expect the Reserve Bank of India to raise rates promptly to cool an economy being lifted by increased agricultural output and a resurgent services sector.
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