The Reserve Bank of India unexpectedly raised its key interest rate and its cash reserve ratio on Wednesday, citing a need to withdraw the Covid-19 pandemic-triggered monetary stimulus provided two years ago, amid recent acute inflationary pressures due to a global surge in food and commodity prices and the supply bottlenecks caused by the war in Ukraine.
The Monetary Policy Committee unanimously decided to raise the policy repo rate by 40 basis points to 4.40 percent with immediate effect, RBI Governor Shaktikanta Das said in a virtual press conference following an unscheduled rate-setting session.
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by Jyotsna V
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