Extent of rate hike cycle to depend on growth-inflation outlook: RBI Governor

Reserve Bank of India (RBI) Governor Sanjay Malhotra said the duration and extent of the rate hike cycle will depend on actual growth and inflation developments and the outlook.

The Governor and five other Monetary Policy Committee (MPC) members voted to raise the repo rate by 25 basis points to 5.5 per cent. The increase came after a gap of nearly four years.

He noted that there are increasing signs of generalisation of inflation, a factor that is shaping the policy stance.