RBI raises rate 35bp to ‘break’ inflation persistence

Committee splits as it tries to balance inflation fight against continued growth

Reserve Bank of India HQ, Mumbai
Reserve Bank of India HQ, Mumbai

The Reserve Bank of India’s monetary policy committee (MPC) raised the policy rate 35 basis points today (December 7) in a move designed to “break” the persistence of inflation.

“On balance, the MPC was of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored, break core inflation persistence and contain second-round effects,” said governor Shaktikanta Das.

The decision, which took the main rate to 6.25%, was not unanimous. One of the six

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