How Will RBI Rate Hike Impact GDP Growth?

The Reserve Bank of India in a surprise move on Wednesday (May 4) announced to hike the repo rate by 40 basis points to 4.40 per cent, the first hike since August 2018. RBI governor said that the decision was taken in order to contain inflation that has remained stubbornly above the central bank's target of 6 per cent for the last three months. The big question however is how much can this rate hike help in taming inflation and also what could be the averse affects of this rate hike on growth. Watch Sakshi batra speak to Dharmakirti Joshi, Chief Economist, Crisil to understand the impliactions of RBI's move.