RBI Hikes Rates by 50-Basis Points to 4.90%

The transcript discusses the recent move by the RBI to increase interest rates by 50 basis points, as inflation is outside Governor Das's comfort zone. The increase is partly due to rising food prices, influenced by the Russian invasion of Ukraine. However, some believe the focus on supply side issues suggests the rate hike campaign may not be prolonged. The RBI's actions are seen as hawkish, with more hikes expected unless supply chain issues, especially in food, are resolved.

What are the potential future implications of the supply chain issues on food prices?

What signals are indicated regarding future hikes in interest rates?