Deutsche Bank said on Monday that fears of a sharp increase in monetary rates by the Reserve Bank of India (RBI) are now weakening. A higher rate hike is not expected by the RBI in September and the central bank may opt for a 0.25 percent hike in the repo rate.
RBI has increased the repo rate three times in a row since May this year. After May, it increased by 1.40 percent. The high level of inflation has forced the RBI to do so. At present, the inflation figures in the country are above the tolerance level set by the government.
Will RBI reduce rates?
In a report, the Germany-based bank said that based on the recently issued MoM of the last meeting of the Monetary Policy Committee (RBI MPC), it can be said that the RBI will now slow down the rate hike. The report pointed to the statement of RBI Governor Shaktikanta Das, where he said that any rate hike action would be taken very carefully and with due diligence and would be implemented to yield quick results.
RBI executive director Rajiv Ranjan, who is also a member of the MPC, has suggested a similar policy, the report said. According to the report, Ranjan has said in his statement that further policy actions will increase the credibility of monetary policy and there will be less need for aggressive rate hikes in the future. RBI Deputy Governor Michael Patra has also given similar indications. Let us tell you that RBI has already taken measures like increasing the repo rate to prevent inflation. In FY2011, the repo rate was increased by 2 percent to 6.75 percent. After this, in the financial year 2012, the repo rate was increased to 1.75 percent and it went up to 8.50 percent.
In another report, domestic brokerage agency Kotak Securities has said that the MPC MoM makes it clear that further rate hikes are required to ensure the credibility of monetary policy.
Weather Update: Possibility of rain in Delhi-UP, a yellow alert for heat wave in Punjab; temperature reaches 47 degrees in Rajasthan
The sudden change in weather on Wednesday night in Delhi NCR, Haryana and Uttar Pradesh caused havoc. Heavy rain along with severe storm disrupted life. Hundreds of trees and electric poles collapsed.
North Korea sending arms to Russia: US alleges ammunition being transported via Middle East and North Africa
The US has accused North Korea of secretly supplying weapons to Russia. According to the New York Times report, North Korea is helping Russia in its war with Ukraine. Weapons are being delivered
Coronavirus Update: Decrease in cases of corona virus in India, less than 10 thousand new cases found in last 24 hours
Coronavirus Update: There is a steady decrease in the cases of coronavirus in India. According to the data released by the Ministry of Health, in the last 24 hours, 9,531 new cases of coronavirus have
Lok Sabha Election 2024: Consensus reached in MVA on seat sharing in Maharashtra, know who will contest on how many seats
Seat sharing has been announced in Mahavikas Aghadi. In Maharashtra, Shiv Sena (Uddhav faction) will contest 21 seats, NCP, SCP on 10 seats and Congress on 17 seats.
Corona crisis increased in China: world's largest electronics market temporarily closed, metro service also suspended
The risk of corona infection is increasing once again in China. Alam is that the world's largest electronics market has been closed due to Corona. 24 metro stations have also been closed.
OnePlus Nord 3 5G: Launched with 80W fast charge, 5000mAh battery, and 50MP camera, know the price and features
OnePlus has launched two affordable phones OnePlus Nord 3 5G and OnePlus Nord CE 3 5G and wireless earbuds Nord Buds 2r in India. The company's OnePlus Nord 3 5G was waiting for a long time in India.
One Nation One Poll: Changes in JPC formed for 'one country-one election'; discussion of name of BJP MP for chairman
The central government has proposed to increase the number of members of the Joint Committee of Parliament. The committee will review two bills proposing to hold simultaneous elections in the country.
'Trump sacrificed India-US relations for business in Pakistan', a big claim by the former NSA
Former US National Security Advisor (NSA) Jake Sullivan has made a sensational allegation against President Donald Trump. Sullivan says that Trump put at stake decades-old relations with a big
Dipika Kakar Baby: 'Sasural Simar Ka' actress Dipika Kakar became a mother, the husband gave information about premature delivery
Sasural Simar Ka Actress Dipika Kakar Welcomes A Baby: 'Sasural Simar Ka' actress Deepika Kakkar was in discussion about her pregnancy for the past many days. Now a little happiness has knocked on his
Bangladesh Violence: 'His tongue opens only on Palestine...', Giriraj Singh lashed out at Owaisi's silence on Bangladesh violence
Union Minister and senior Bharatiya Janata Party (BJP) leader Giriraj Singh has taken a dig at the opposition's silence on the Bangladesh violence. He attacked not only the big leaders of the India
