The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Thursday maintained status quo on repo rate, the rate at which it lends to banks, recognising the rise in inflation caused by soaring food and vegetable prices.

It is for the first time that the MPC led by Shaktikanta Das turned hawkish ever since the new governor took over exactly a year ago last December. In fact, Das said it in as many words that “inflation control is the prime objective of RBI’s money policy.” ................ET