In a major decision the RBI’s monetary policy committee( MPC) has voted unanimously to increase the policy repo rates by 40 bps, to 4.40 pc, with immediate effect, RBI Governor Shaktikanta Das announced at a press conference.
The RBI governor added that the central bank had announced its intention to withdraw its accommodative stance, and this was in line with that decision.
Das further pointed out that the sharp acceleration in headline CPI inflation in March 2022 to 7% was propelled in particular by food inflation.
Nine out of the 12 food subgroups registered an increase in inflation in the month of March. High-frequency price indicators for April indicate the persistence of food price pressures, Das was quoted as saying BY ANI