India Announces Another Interest Rate Hike

 　　India's Reserve Bank has raised interest rates in a continuing struggle to control inflation.  The rate hike, which was announced Friday, is the 12th increase in the last year-and-a-half.  But there are fears that this could further slow down an economy that has begun losing some momentum¹.

　　The Reserve Bank's 0.25 percentage point increase to 8.25 percent was widely anticipated.

　　The bank's move is an effort to control inflation, which continues to remain high despite the steady rise in the cost of borrowing money over the last 18 months.

　　Inflation was about 9.75 percent in August, the highest in the last 13 months.

　　Economic slowdown

　　However, while prices continue to rise, the economy has begun to slow down.

　　Finance Minister, Pranab Mukherjee, hopes the economic momentum will revive.

　　"There are also signs of growth being affected² by the monetary³ tightening," he said. "I hope the measures taken will get us back to a more comfortable inflation situation earlier rather than later while having scope for growth to pick up in the second half of the year."

　　Economic growth in India came down to 7.7 percent in the second quarter - the slowest in the last 18 months.

　　Cause for concern

　　That is causing some worries, and several economists⁵ have begun to question the measures being taken by the Reserve Bank to fight inflation.

　　Among them is economist⁴ D.H. Pai Panandiker at the RPG Goenka Foundation in New Delhi.

　　"Apparently⁶ this was done to check inflation, but all it has done is check growth. If for one year they have been unable to do it, they must rethink about that policy," he said.

　　The interest rate hike came a day after oil companies raised the price of gasoline by five percent to compensate⁷ for the higher cost of buying crude oil. India imports most of its crude requirements.

　　Impact on consumer

　　Both political allies of the Congress led government and opposition⁸ parties have slammed the latest hike in gasoline prices and demanded a rollback.

　　Rajnath Singh, the leader of the main opposition Bharatiya Janata Party, says rising oil prices and interest rates are hurting common people.

　　Singh adds that government appears to have lost its grip on the economy and is directionless in handling the situation.

　　However, officials say gasoline prices are rising because the government no longer controls the prices but has allowed oil companies to link them to market rates.

　　Finance Secretary Montek Singh Ahluwalia says efforts have to be made to control inflation.  But he says this cannot be done by holding down energy prices.

　　"Frankly⁹, internationally and globally people believe that countries that can absorb energy prices that exist globally are much more likely to grow rapidly than countries that suppress it," said Ahluwalia.

　　However the persistently¹⁰ high inflation is causing widespread public anger and leading to loss of popular support for the government.

1 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。

2 affected   

adj.不自然的，假装的

参考例句：

• She showed an affected interest in our subject.她假装对我们的课题感到兴趣。
• His manners are affected.他的态度不自然。

3 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

4 economist   

n.经济学家，经济专家，节俭的人

参考例句：

• He cast a professional economist's eyes on the problem.他以经济学行家的眼光审视这个问题。
• He's an economist who thinks he knows all the answers.他是个经济学家，自以为什么都懂。

5 economists   

n.经济学家，经济专家( economist的名词复数 )

参考例句：

• The sudden rise in share prices has confounded economists. 股价的突然上涨使经济学家大惑不解。
• Foreign bankers and economists cautiously welcomed the minister's initiative. 外国银行家和经济学家对部长的倡议反应谨慎。 来自《简明英汉词典》

6 apparently   

adv.显然地；表面上，似乎

参考例句：

• An apparently blind alley leads suddenly into an open space.山穷水尽，豁然开朗。
• He was apparently much surprised at the news.他对那个消息显然感到十分惊异。

7 compensate   

vt.补偿，赔偿；酬报 vi.弥补；补偿；抵消

参考例句：

• She used her good looks to compensate her lack of intelligence. 她利用她漂亮的外表来弥补智力的不足。
• Nothing can compensate for the loss of one's health. 一个人失去了键康是不可弥补的。

8 opposition   

n.反对，敌对

参考例句：

• The party leader is facing opposition in his own backyard.该党领袖在自己的党內遇到了反对。
• The police tried to break down the prisoner's opposition.警察设法制住了那个囚犯的反抗。

9 frankly   

adv.坦白地，直率地；坦率地说

参考例句：

• To speak frankly, I don't like the idea at all.老实说，我一点也不赞成这个主意。
• Frankly speaking, I'm not opposed to reform.坦率地说，我不反对改革。

10 persistently   

ad.坚持地；固执地

参考例句：

• He persistently asserted his right to a share in the heritage. 他始终声称他有分享那笔遗产的权利。
• She persistently asserted her opinions. 她果断地说出了自己的意见。