Monetary policy: RBI shifts gaze to inflation from growth after 2 years

Sets stage for rate hikes after June policy amid high oil prices, yields

The increase in pump prices of petrol and diesel by a steep Rs 10 in the fortnight following surging crude oil prices over $100 a barrel has been the factor in the Reserve Bank of India (RBI) turning its attention to inflation over growth, which was its focus since the pandemic came in March 2020.
 

The central bank on Friday indicated it was preparing to withdraw the accommodative stance, sending bond yields to a three-year high. The six-member Monetary Policy Committee (MPC) unanimously voted to keep the policy rate, or the repo rate, unchanged at 4 per cent. The accommodative