InvestorQ : Will the RBI reduce its inflation focus, now that it has come down?
Mahima Roy made post

Will the RBI reduce its inflation focus, now that it has come down?

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2 months ago
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In the MPC meetings of May, June and August 2022, RBI hiked the rates by 40 bps, 50 bps and 50 bps respectively, taking the total hike to 140 bps. Additionally, the SDF base rate was hiked by 40 bps and CRR was also hiked in May by 50 bps. All these measures had cumulative impact of tapering inflation from 7.79% in April to 6.71% in July.

Will RBI go slow on inflation now? It will seek ratification from FOMC minutes and WPI inflation. If both are favourable to India, then the RBI may look at shifting focus back to growth.

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