RBI rate hike is first step on ‘glide path’
The Reserve Bank of India (RBI) raised its key policy rate by 25 basis points to 8% today, which some observers have suggested represents a "tacit acceptance" of the sweeping changes to monetary policy recommended by the Urjit Patel committee.
In December the RBI pledged to tighten its monetary policy if any one of three inflation measures – headline, food or non-food – "did not fall". Although annual CPI inflation dropped to 9.9% in December, with food and fuel stripped out, it "remained flat"
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