The Reserve Bank of India Governor, Shaktikanta Das, in a press conference, has announced that the Monetary Policy Committee has decided to hike lending rates by 40 bps to 4.40 per cent due to inflation and changing global economics. The MPC has also decided to remain accommodative while focusing on withdrawal, and thus a reversal of the rate action in 2020, which saw 75 bps shaved off after the global economy went into turmoil due to the COVID-19 pandemic. We are joined by Harsh Roongta, an Economist on the phone to share his views on this.
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