DC Edit | Relief from inflation unlikely
Deccan ChronicleAs expected, RBI governor Shaktikanta Das-led Monetary Policy Committee hiked the repo rate by 50 basis points to 5.90 per cent to cool down inflation which remains above the comfort level of the central bank. The four rate hikes cumulatively increased the repo rate — the rate at which RBI lends money to banks — to 5.90 per cent from four per cent. Though the equity markets drew comfort from the RBI governor’s remarks that the central bank would support growth henceforth, investors appear to have ignored RBI concerns about upside risks to food prices — caused by both delayed withdrawal of monsoon and higher food import costs. The RBI can no longer take the heat of the adverse global economic headwinds as it has already sold $82.8 billion in 2022 in just nine months in vain trying to defend the rupee compared to the $14 billion that it sold in 2013 when it was affected by the US taper tantrums.