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The Australia is booming due to minerals, Asian demand while the India is faced with a massive influx of foreign capital and strong domestic economy.

Surprise move by the Central Bank of the Australia to rate 4 75pc – the first increase since may - thrust Australian dollar above parity with the dollar at $1.0013 that investors expect interest rates to attract more foreign money into the country.

Growth in the country growing, driven by the strong Asian demand for iron ore and other minerals.

Increase rates by the Reserve Bank of the India is the sixth since March that decision-makers are caught between a strong economy and a fragile global economy prompted a flood of foreign money Asia emerging as investors seek paradise of strong growth.

This has pushed stock of dealmaking markets and currencies to dizzying heights, hurt exports and create fears of skimmings shares, real estate, gold markets.

The Reserve Bank of India said increase in global commodity prices coupled with domestic demand pressures, have made inflation concern .the ' September inflation has been above of its recent trend of 5 5pc 5mC 8 6pc.

The India Central Bank raised its repo--6 25pc short-term bank loans rates and rate repo - who pays the Central Bank on bank deposits - 5 25pc rate.

By increasing the rate, the India broke ranks with the Thailand, South Korea Indonesia and the Philippines, who developed rates on hold, more hikes could attract foreign capital even more worried.

Decision of the Australia was unexpected, and most analysts had predicted no there is no change after numbers last week showed lower than expected inflation of 2 4pc in the September quarter.

However, the Bank reserve Australia said in his statement that it expects inflation go higher as a result of the expansion of mining of the country - which is caused by the Asian powers increase in China and the nation as well as advanced as the South and the Japan Korea India.

The Bank says economy the Australia is facing "great shock expansionist" due to the high prices that its exports of mineral are overseas extraction .Termes Australia Exchange - a measure of how much is exported for each dollar of imports - is at its highest since the 1950s, increasing wealth of the country.

"Future research, despite some good results on inflation, the risk of inflation increases again on remnants of medium-term," Reserve Bank Governor Glenn Stevens said in the statement"The Committee concluded that the balance of risks was moved up to the point where a first, modest tightening of monetary policy was prudent".

The Commonwealth Bank of Australia, the largest lender home in the country, responded to rising rates by increasing its floating rate mortgage standard by 0.45 of one percentage point.

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