“RBI’s decision to raise the repo rate by 50 bps to 5.40 percent clearly signals the intent to keep the country within the targeted inflation rate. Hence the GDP growth forecast was also retained at 7.2% which is still one of the best globally. The country’s economy is heading In the right direction with Urban demand increasing and domestic economic activity showing signs of broadening even though rural demand shows a mix trend.  The RBI and MPC have taken bold steps to overcome the global headwinds that are driving inflation and keep the Indian economy on the path of growth.”