Reserve Bank of India Raised Repo Rate by 50 Bps to 5.9%: Governor Das

The MPC decided to increase the policy repo rate by 50 basis points to 5.9% to address high inflation while supporting growth. The global economic outlook remains bleak with tightening financial conditions and recession fears. Despite global challenges, India's economic activity remains stable, supported by factors like GDP growth and capital expenditure. Inflation is elevated due to supply shocks and global market spillovers, but recent commodity price corrections may ease pressures. The MPC aims to withdraw monetary accommodation to anchor inflation expectations and support medium-term growth.

What factors are contributing to the elevated consumer price inflation?

What is the expected impact of the recent correction in global commodity prices on inflation?