RBI to closely monitor food price spike to gauge inflation impact: MPC minutes
Thursday, 24 August 2023 India's monetary policy committee (MPC) will closely monitor factors affecting inflation and take necessary action, but expects recent food price increases to be temporary. The committee highlighted risks to inflation from El Nino conditions, global food prices, and uneven monsoon distribution. The MPC kept the repo rate unchanged at 6.50% in a unanimous decision.
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RBI governor Shaktikanta Das has suggested that interest rates may need to be raised if there is a second-round impact of food price shocks on overall prices.... IndiaTimes