Need To Raise Rates To Curb Inflation: RBI

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>India needs to raise interest rates to restrain inflation, said Duvvuri Subbarao, governor of the Reserve Bank of India, on Monday.<br><br>Restraining inflation will ensure medium-term economic growth is sustainable, he said in a speech on India and the global financial crisis.<br><br>The 10-year benchmark bond yield rose 2 basis points to 8.45 per cent after the governor's comments.<br><br>Last week, the RBI had raised interest rates by 50 basis points in a bid to tame inflation amid signs of slowing economic growth. It was the 11th rate increase since March 2010.<br><br>(Reuters)</p>