MPC may hike repo rate by 25 bps before a pause Subject: Economy Section: MONETARY POLICY Context: Against the global balancing act between hiking interest rates, withdrawing systemic liquidity and the series of recent bank failures, the Reserve Bank of India’s Monetary Policy Committee (MPC) is likely to raise the policy rate by another 25 bps in its first bi­monthly monetary policy for FY24, taking cognizance of the contagion impact on the Indian economy Can policy rate hikes alone control inflation? Inflation numbers for the first two months of 2023 have once again crossed the 6 per cent barrier […]