MPC raises repo rate as inflation risks overshadow growth
In short
The MPC raised the repo rate because inflation risks were rising and demand stayed strong. The move was framed as pre-emptive tightening.
The report says supply shocks also pushed the committee to act. The exact repo rate and the size of the increase were not stated in the available reporting.
What the reporting says
The MPC raised the repo rate as inflation risks and strong demand pushed it toward pre-emptive tightening. The publisher summary says supply shocks were also a factor behind the move. The available reporting does not state the new repo rate, the size of the hike, or the voting split details beyond a majority favoring calibrated tightening.
Why it matters
The MPC’s rate decision reflects concern that supply shocks and strong demand could keep inflation under pressure, even as broader growth commentary pointed to 7.8% growth in the headline. The publisher summary says the committee chose pre-emptive action and that most members favored calibrated tightening. The exact new repo rate and the magnitude of the hike are not stated in the available reporting.