Global geopolitical factors, a hawkish US Fed, plunging rupee, rising food prices weigh on the Reserve Bank's Monetary Policy Committee as it tries to fight inflation and support growth
Shaktikanta Das, governor, Reserve Bank of India (RBI)
Image: Punit Paranjpe / AFP
Confronted with “daunting challenges” the Reserve Bank’s Monetary Policy Committee announced a repo rate hike of 50 basis points and its decision to continue to focus on withdrawal of accommodation to tackle rising inflation while also giving growth a chance (see table). The central bank retained its retail inflation forecast at 6.7 percent but marginally lowered its growth outlook to 7 percent from 7.2 percent for the current fiscal year (table).
(This story appears in the 21 October, 2022 issue of Forbes India. To visit our Archives, click here.)