Australia and India in rate rises

Australia and India have both raised interest rates by a quarter percentage point amid fears of rising inflation.

The central bank of Australia put up rates from 4.5% to 4.75%, surprising markets with the first rise since May.

India's rise, the sixth this year, was less unexpected. The Reserve Bank raised the repo rate, the rate at which it lends to banks, to 6.25% from 6%.

Ian Beattie is Asia specialist at New Star Institutional Managers. He told the BBC why the Australians made this move.