RBI Hikes Rates by 50-Basis Points to 4.90%

The transcript discusses the recent move by the RBI to increase interest rates by 50 basis points, as inflation is outside Governor Das's comfort zone. The increase is partly due to rising food prices, influenced by the Russian invasion of Ukraine. However, some believe the focus on supply side issues suggests the rate hike campaign may not be prolonged. The RBI's actions are seen as hawkish, with more hikes expected unless supply chain issues, especially in food, are resolved.

Why did the RBI decide to increase interest rates by 50 basis points?

• To stabilize the currency

• To boost economic growth

• To address inflation concerns

• To increase foreign investments

What global event did the RBI cite as a reason for inflation?

• Brexit

• US-China trade war

• Russian invasion of Ukraine

• COVID-19 pandemic

What does the RBI's focus on supply side issues suggest about the rate hike campaign?

• It will be reversed soon

• It will be paused indefinitely

• It might not be as prolonged

• It will be more aggressive

What is the RBI's current stance on monetary policy?

• Hawkish

• Neutral

• Dovish

• Indifferent

What might lead the RBI to ease its monetary policy in the future?

• Decrease in unemployment rates

• Improvement in global trade

• Resolution of supply chain issues

• Increase in foreign reserves