The MPC mandate was to bring the CPI inflation rate to below 4 per cent by March 2018, some five months from now. We need to explore the reasons for the controversial decision of the MPC to stubbornly raise the real repo rate. So why the unseemly hurry to cut the repo rate to 6.25 per cent ? Over the last 14 months, inflation has averaged 3.3 per cent, and the real repo rate has tripled to 3 per cent. Core inflation, service inflation, HRA inflation, oil inflation, vegetable inflation, and unforeseen inflation.

Source: Indian Express November 24, 2017 18:22 UTC