Who Won India's Tug of War on Interest Rates? (Bloomberg.com)

A Bloomberg analysis on what RBI's recent increase of the repurchase rate means to the Indian economy. The RBI didn't change the 'bank rate', at which the central bank lends to commercial banks, and left it at a 31-year low of 6 percent.

Apprently, the RBI was under some pressure from the govt not to raise any interest rates. The article concludes that by raising a short-term rate that won't directly affect long-term interest rates the central bank esstablished its role as the one who makes the country's monetary policy.