RBI flags widening inflation risks, puts rate cuts on ice

RBI's Monetary Policy Committee raised the benchmark repo rate by 25 basis points to address rising inflation concerns. Governor Sanjay Malhotra indicated a generalisation of inflation, with many commodities exceeding 4% inflation. Deputy Governor Poonam Gupta highlighted the influence of external supply-side shocks on inflation projections. External members expressed concerns about the implications of an aggressive rate hike on economic growth.