<h1>Reserve Bank of India Raises Repo Rate by 40 Basis Points to Combat Rising Inflation and Economic Uncertainties.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India held an off-cycle meeting on May 2 and 4, 2022, to address rising inflation and economic uncertainties. The committee unanimously decided to increase the policy repo rate by 40 basis points to 4.40% to control inflation, which surged to 7% in March due to geopolitical tensions and supply disruptions. The MPC aims to keep inflation within the target while supporting economic growth. It also noted that domestic economic activity is stabilizing, but global risks and high commodity prices pose challenges. The next MPC meeting is scheduled for June 6-8, 2022.