RBI decision not to hike repo rate

RBI decision not to hike repo rateThe move of RBI of not to hike repo rate is a welcome move and not a harsh move.

Yes inflation is on the high but as the RBI Governor mentioned that they still need to check more data on Inflation and they are also expecting a decrease in food inflation by this month, so if we talk about the overall economy, keeping the rate unchanged and not hiking is a better move.

The most prominent reason for inflation is the fall in the value of rupee. And the only long term solution for the same is overall improvement of the economy with more investors coming in and the decrease in fiscal deficit. And anyhow, the short term change in interest rates is not going to have a huge impact on the inflation immediately.