Inflation is the rate at which an economy's overall price level of goods and services increases over time.

Indices closed on a weaker note post RBI meet. The benchmark indices and broader market closed at day’s low after the central bank hiked repo rate by 35 basis points.

RBI Governor stated that despite a fall in crude oil prices and commodity prices, inflation is at an uncomfortably high level. However, the domestic activity has been resilient while PMI in July is at an eight-month high. For the next financial year, RBI retains its CPI forecast at 6.7 per cent.

In context to market expectations from Friday’s RBI MPC meet, Sumit Chanda, Founder & CEO of JARVIS Invest says, “While there have been some indications of the inflation moderating, with the Brent being still above the $100 mark and a falling rupee, we can expect RBI to hike the repo rate by about 50 bps.

The Reserve Bank of India upped the repo rate by 50 basis points today, as expected. What influence, though, might debt fund investors have?