On a wing and a prayer: Only this explains the RBI move to jack up rates

By raising the repo rate, the RBI has sacrificed growth and investment to try and contain inflation, which even the government says, has been driven by external factors

So the government and the RBI have decided to sacrifice investment/growth to control inflation on the one hand and reduce the outflows of dollars on the other. To this end, they have increased the price of money in India.

Will they succeed in both, in one or the other, or fail in both? The question has to be answered in the context of the RBI’s own projection that inflation will be 6.7 per cent in FY23. If that’s what the RBI expects, the actual number is likely to be quite a bit higher. So the first target of the hike in