In a surprise move on Wednesday, 4 May, the Reserve Bank of India hiked the benchmark repo rate for the first time in four years by 40 basis points to 4.4 percent. Alongside this, the central bank also raised the cash reserve ratio or CRR by 50 basis points to 4.50 percent.

Unveiling the new policy on Wednesday, RBI Governor Shaktikanta Das said the bank is aiming to keep inflation – which is already close to 7 percent – at the desired level in the wake of the ongoing Russia-Ukraine war and increase in food and commodity prices globally.

However, there are a few puzzling takeaways from the central bank statement. First, is the fact that the bank has retained the accommodative monetary policy, which essentially means that the bank is prepared to expend the money supply to boost economic growth. This, obviously, runs counter to the bank's latest move.


Second is the timing of it. Less than a month ago on 8 April, the bank's Monetary Policy Committee – which decides the repo rate – decided to keep the rate unchanged despite rising inflation and tightened geopolitical uncertainty. And since the same factors remain even now, why the sudden hike? What changed?

In today’s episode, we break down what prompted the RBI to hike the repo rate, the significance of the move, and how it will impact the end consumer.

In today’s episode, you will hear from Ananth Narayan, Professor of Finance at SP Jain Institute of Management and Research, and Quantum Advisors India's Arvind Chari. You will also hear from Prosenjit Dutta, former editor of Businessworld and Business Today.

Host and Producer: Himmat ShaligramEditor: Shelly Walia 
Music: Big Bang Fuzz
Listen to The Big Story podcast on:
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<div>In a surprise move on Wednesday, 4 May, the Reserve Bank of India hiked the benchmark repo rate for the first time in four years by 40 basis points to 4.4 percent. Alongside this, the central bank also raised the cash reserve ratio or CRR by 50 basis points to 4.50 percent.<br>
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</div>
<div>Unveiling the new policy on Wednesday, RBI Governor Shaktikanta Das said the bank is aiming to keep inflation – which is already close to 7 percent – at the desired level in the wake of the ongoing Russia-Ukraine war and increase in food and commodity prices globally.<br>
<br>

</div>
<div>However, there are a few puzzling takeaways from the central bank statement. First, is the fact that the bank has retained the accommodative monetary policy, which essentially means that the bank is prepared to expend the money supply to boost economic growth. This, obviously, runs counter to the bank's latest move.<br>
<br>
Second is the timing of it. Less than a month ago on 8 April, the bank's Monetary Policy Committee – which decides the repo rate – decided to keep the rate unchanged despite rising inflation and tightened geopolitical uncertainty. And since the same factors remain even now, why the sudden hike? What changed?<br>
<br>

</div>
<div>In today’s episode, we break down what prompted the RBI to hike the repo rate, the significance of the move, and how it will impact the end consumer.<br>
<br>

</div>
<div>In today’s episode, you will hear from Ananth Narayan, Professor of Finance at SP Jain Institute of Management and Research, and Quantum Advisors India's Arvind Chari. You will also hear from Prosenjit Dutta, former editor of Businessworld and Business Today.<br>
<br>
<strong>Host and Producer: </strong>Himmat Shaligram</div>
<div>
<strong>Editor:</strong> Shelly Walia </div>
<div><br>
</div>
<div>
<strong>Music:</strong> Big Bang Fuzz</div>
<div><br>
</div>
<div><strong>Listen to The Big Story podcast on:</strong></div>
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<div>Apple: <a href="https://www.youtube.com/redirect?q=https%3A%2F%2Fapple.co%2F2AYdLIl&amp;redir_token=G9sQMbbppKv-LEFD29gDyTmPMzt8MTU3MTM4MDU5NkAxNTcxMjk0MTk2&amp;v=xkpX1V6aUFo&amp;event=video_description">https://apple.co/2AYdLIl</a>
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<div>Saavn: <a href="https://www.youtube.com/redirect?q=http%3A%2F%2Fbit.ly%2F2oix78C&amp;redir_token=G9sQMbbppKv-LEFD29gDyTmPMzt8MTU3MTM4MDU5NkAxNTcxMjk0MTk2&amp;v=xkpX1V6aUFo&amp;event=video_description">http://bit.ly/2oix78C</a>
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<div>Google Podcasts: <a href="https://www.youtube.com/redirect?q=http%3A%2F%2Fbit.ly%2F2ntMV7S&amp;redir_token=G9sQMbbppKv-LEFD29gDyTmPMzt8MTU3MTM4MDU5NkAxNTcxMjk0MTk2&amp;v=xkpX1V6aUFo&amp;event=video_description">http://bit.ly/2ntMV7S</a>
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<div>Spotify: <a href="https://www.youtube.com/redirect?q=https%3A%2F%2Fspoti.fi%2F2IyLAUQ&amp;redir_token=G9sQMbbppKv-LEFD29gDyTmPMzt8MTU3MTM4MDU5NkAxNTcxMjk0MTk2&amp;v=xkpX1V6aUFo&amp;event=video_description">https://spoti.fi/2IyLAUQ</a>
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<div>Deezer: <a href="https://www.youtube.com/redirect?q=http%3A%2F%2Fbit.ly%2F2Vrf5Ng&amp;redir_token=G9sQMbbppKv-LEFD29gDyTmPMzt8MTU3MTM4MDU5NkAxNTcxMjk0MTk2&amp;v=xkpX1V6aUFo&amp;event=video_description">http://bit.ly/2Vrf5Ng</a>
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<div>Castbox: <a href="http://bit.ly/2VqZ9ur">http://bit.ly/2VqZ9ur</a>
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The Big Story is back with a second season!

The news culture of our times is noisy, crowded, and honestly so confusing. This is why we are coming every fortnight on your podcast platforms to help you make sense of the new and now. 

With two new hosts, Anjali and Prateek, the second season of The Big Story will feature longer and well-rounded discussions with experts across science, culture, technology, politics, and more. Tune in on your preferred podcast platform!   



Millions of listeners seek out Bingepods (Ideabrew Studios Network content) every day. Get in touch with us to advertise, join the network or click listen to  enjoy content by some of India's top audio creators.
studio@ideabrews.com

Android | Apple

<p>The Big Story is back with a second season!</p>
<p>The news culture of our times is noisy, crowded, and honestly so confusing. This is why we are coming every fortnight on your podcast platforms to help you make sense of the new and now. <br aria-hidden="true"><br aria-hidden="true">With two new hosts, Anjali and Prateek, the second season of The Big Story will feature longer and well-rounded discussions with experts across science, culture, technology, politics, and more. Tune in on your preferred podcast platform!   </p>
<p> </p>
<p><em>Millions of listeners seek out <a href="https://bingepods.com/">Bingepods</a> (Ideabrew Studios Network content) every day. Get in touch with us to advertise, join the network or click listen to  enjoy content by some of India's top audio creators.</em><br><em><a href="mailto:studio@ideabrews.com">studio@ideabrews.com</a></em></p>
<p><a href="https://play.google.com/store/apps/details?id=com.bingepods.app">Android</a> | <a href="https://apps.apple.com/us/app/bingepods/id1637568609">Apple</a></p>

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