New Delhi, 4/5:In a surprise move, the Reserve Bank of India Wednesday hiked the key policy interest (repo) rate by 40 bps to 4.40 per cent with immediate effect in order to contain the spike in inflation and re-anchor the inflationary expectations of households.
RBI Governor Shaktikanta Das warned that the inflationary pressure may stay for a longer period than expected.
“Inflation must be tamed in order to keep the economy resolute. As we navigate through this difficult period, it is necessary to be sensitive to new realities,” said Das as he announced the mid-policy MPC decision.
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