In a recent report, it has come to light that not everyone was fine about increasing interest rates last month on July 26 on the 12-member RBI panel. As per reports, four of the 12 members were keen on adopting a “wait and watch policy”, while three pressed for it and one proposed a 25 basis-point boost to the cash reserve ratio.

It’s very much known that in order to rein in rising inflation, Reserve Bank Governor Duvvuri Subbarao had increased interest rate by half a percentage point on July 26 and predicted inflation by the end of March will be 7%.

“The aggressive rate action last month suggests the governor is very serious about getting control over inflation”, said Jay Shankar, chief economist at Religare Capital Markets Ltd. in Mumbai. “This reflects inflation is not going to come down to the RBI’s comfort zone anytime soon”.

Though financial crunch is pinching every single country across the world, it has been reported that when it comes to the so-called BRICS nations, India tops the list of being the costliest one.

Deciphering the current global market scenario, it’s being predicted that inflation could reach around 10% in August, while India’s economic growth may drop to 8% in the year ending March 31.