<h1>RBI's MPC Raises Repo Rate by 50 Basis Points to 5.40% Amid Rising Inflation Concerns and Global Uncertainty.</h1> The Monetary Policy Committee (MPC) of the Reserve Bank of India met from August 3 to 5, 2022, to assess the macroeconomic situation. The committee decided to increase the policy repo rate by 50 basis points to 5.40% to address inflation, which remains above the target range. The decision aims to contain inflation within a medium-term target of 4% while supporting economic growth. The global economic environment has worsened, with risks of recession heightened by monetary tightening and geopolitical tensions. Domestically, economic activity remains resilient, but inflationary pressures persist, necessitating further monetary policy actions. The next MPC meeting is scheduled for September 28-30, 2022.