“The Repo rate hike is a prudent step in an uncertain global scenario. The underlying stress in inflation for the next few quarters warranted some steps in time to prevent further escalation. A rate hike would not be effective without calibrating the operative rate to repo rate. However, RBI is expected to maintain adequate liquidity for smooth functioning of the money markets.”
RBI MPC Comment from Mr. Pralay Mondal, MD & CEO, CSB Bank
