scorecardresearch

Will RBI's 12th interest rate hike help tame inflation?

Just as all the earlier interest rate hikes by the Reserve Bank of India over the past 18 months have not been able to bring down headline inflation, this time too they do not believe the latest hike is going to make any difference.

The majority of respondents has answered in the negative. Just as all the earlier interest rate hikes by the Reserve Bank of India over the past 18 months have not been able to bring down headline inflation, this time too they do not believe the latest hike is going to make any difference. In fact, the efficacy of rate hikes in taming inflation has begun to be increasingly questioned by experts. They argue that the sequence of hikes must now be stopped, as it has begun impacting economic growth, and inflation should be tackled by addressing supply side issues.