In a big hit to the common man, RBI Governor Shaktikanta Das announced a rate hike of 40 bps with immediate effect. The Reserve Bank of India(RBI) met in an off-cycle meet on May 2 & 4 and decided unanimously to raise rates as inflation pressures continues to risk growth, RBI governor Shatikanta Das said in his surprise address.
Also watch| RBI Governor Shaktikanta Das warns of much higher food prices despite rate hike shock
Inflation in India has been above the RBI's tolerance level for the last 3 months. The RBI Governor raised the red flag for inflation blaming the war and admitting that India is not immune to these global shocks.
• India is not an island in this globally connected world
• Risk of inflation to remain elevated at these levels for 'too long'
• India has been confronted with higher inflation due to ongoing war
• Must incorporate new economic realities into our thinking and policy
RBI Governor Shaktikanta Das warns of much higher food prices despite rate hike shock
• Economic effects of the war are spreading far and wide
• Debt distress is rising among developed world
• Recent GDP releases suggest global growth is slowing down
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