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Business Standard

Time for measured RBI monetary policy moves: What prompted the rate hike

The MPC maintained its hawkish stance, raising the rate to a three-year high

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RBI Policy | monetary policy committee | repo rate

Business Standard 



Photo: Bloomberg
Photo: Bloomberg

The six-member (MPC) of the Reserve Bank of India (RBI) on Friday hiked the policy by 50 basis points to 5.4 per cent — a three-year high —owing to inflation concern and to shield the exchange rate, which has come under pressure since war broke out in Europe in February.

The MPC maintained its hawkish stance, raising the rate to a three-year high, a move that stumped the bond market, while also terming the inflation level ‘unsustainable’ and ‘unacceptable’.

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First Published: Sat, August 06 2022. 00:00 IST

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