Now, as British inflation has tumbled close to German levels, so have interest rates: the Bank's repo rate is now 5.5%, compared with the European Central Bank's 3%.

ECONOMIST: The single currency

The Reserve Bank of India raised its repo rate to 6.75% from 6.5% as expected Thursday, but raised its inflation expectations by 100 basis points to 8% now, up from 7%, the Bank said in a press statement.

FORBES: India Inflation Outlook Sours, Commodities Blamed; Real Rates Next to Zero

At the same time, the RBI left the bank rate unchanged at 6%, maintaining the repo and reverse repo rates at the current levels of 4.75% and 3.25% respectively.

FORBES: Market Scan