Source: Indian Express Ministry of Finance (Dept. of Economic | ECONOMY by VIVEK SINGH

Source: Indian Express
Ministry of Finance (Dept. of Economic Affairs) publishes 'Monthly Economic Report'. The Oct. report says that Inflation has moderated but risks to growth and macroeconomic stability remain because we are not completely out of the inflation risk due to global risks. On a cumulative basis RBI has increased the repo rate by 250 basis points (2.5%) since April 2022. But it has not been fully transmitted into the lending rates. It may take some more time for the full transmission and if that happens then lending rate will further increase which may reduce (temper) the demand in the economy leading to risks for economic growth and we cannot reduce the repo rate right now because we are not sure about how the inflation situation will move because of the unpredictable geopolitical situation.
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