The Reserve Bank of India (RBI) has raised interest rates to take on rising inflation, according to the RBI Governor Raghuram Rajan. RBI said that if retail inflation eases as projected, it does not foresee further near-term monetary policy tightening. The rate hike was driven by expectations of high but moderating consumer price index (CPI) inflation. RBI said economic growth was likely to fall short of its earlier projection of 5 per cent this fiscal year and improve to 5-6 per cent in the year that starts in April.