RBI flags widening inflation risks, puts rate cuts on ice

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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.