Will the Monetary Policy Committee’s sharper-than-expected rate hike help engineer RBI’s hoped-for ‘safe and soft’ landing?
Much has changed since the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) met in June 2022. Globally, inflation is up. Growth is down. Advanced countries and emerging markets are both battling the same devils—higher inflation, lower growth. And with the same armour—hike in policy interest rates. The difference is only one of degree. Some, like the Magyar Nemzeti Bank, the central bank of Hungary, raised rates 200 basis points early July, and others like the central banks of Australia and the UK raised rates by 50 basis points.