“Repo rate changes target inflation. But RBI is very unlikely to increase the repo rate now as the primary focus is on growth. With the risk of Omicron affecting the GDP, the economy may again be impacted. Thus, in such a situation, it is highly unlikely RBI will increase or decrease the repo rate. Moreover, one needs to keep in mind that the Monetary Policy alone can’t bring down inflation,” says Madan Sabnavis, chief economist, Care Ratings, a credit rating agency. He points out how inflation continued to rise even when RBI reduced the repo rate (see graphic).