The Reserve Bank of India (RBI)’s Monetary Policy Committee (MPC) announced a 50 basis points (bps) hike in the repo rate to 5.90 per cent on Friday in order to bring elevated inflation back to its target.

The MPC also retained its current stance of remaining focused on the withdrawal of accommodation, Das said. The decisions on both the rate hike and the stance saw a majority of five votes and dissent of one vote in the six-member MPC, Das said.

India’s retail inflation rate reversed its three-month downward trend in August, rising to 7 per cent from 6.7 per cent in the previous month, driven by a surge in food prices. With Russia’s invasion of Ukraine in late February exacerbating supply-side disruptions and leading to a sharp rise in prices of several global commodities, India’s retail inflation has faced upward pressure.


Prasanna Balachander, Group Executive, Head - Global Markets & Proprietary Trading Group at ICICI Bank, Samiran Chakraborty, Chief Economist, India at Citibank, Mridul Saggar, Former Member, Monetary Policy Committee and Dinesh Kumar Khara, Chairperson of State Bank of India, share their views on the MPC announcements. Listen in.

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