New Delhi, Oct. 12 -- In the war against inflation, 16 central banks raised benchmark interest rates at their September and October meetings. The Reserve Bank of India joined the bandwagon last week, raising the repo rate by 25 basis points after nearly three-and-a-half years. It also shifted its stance from neutral to calibrated tightening, a stance last adopted in October 2018.

The world has entered a higher-for-longer interest-rate scenario. Elevated rates lower inflation by making borrowing pricier and cooling economic demand. The impact is seen after a lag as households re-adjust spending and companies reconsider investments due to rising interest outgo and dearer crude-linked raw materials.







Despite negative supply shocks fro...