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.)