What's New :

As high prices restrain consumption, inflation control must be top priority

  • Published
    3rd Oct, 2022


The Reserve Bank of India’s rate decision to raise interest rates by 50 basis points, as a bout of extreme volatility in international financial markets combines with persistently high domestic retail inflation to threaten macroeconomic stability, globally and in India.

Reason behind the move

  • Economic problems: The COVID pandemic and Russia-Ukraine war were the two factors responsible for monetary policy operations by RBI to come out of Inflation.
  • Increasing price pressure: The RBI’s latest surveys of households’ inflation expectations and consumer confidence are signalling that price pressures will continue to restrain consumption.
You must be logged in to get greater insights.

Verifying, please be patient.

Enquire Now