RBI: RBI will increase repo rates for the fourth time in a row to control inflation! Experts said this


Posted on 26th Sep 2022 03:21 pm by rohit kumar

The Reserve Bank of India (RBI) may increase the repo rate for the fourth time in a row to control inflation. For this, he can also take the opinion of the central banks of other countries including the US Federal Reserve.

 

RBI has increased the repo rate by 140 basis points (bps) since May. Experts say the central bank can now take it to a higher level (5.9 percent) in three years with an increase of 50 basis points.

 

 

The central bank had increased the repo rate by 40 basis points in May and by 50 basis points in June and August. It currently stands at 5.4 percent.

 

Consumer price-based (CPI) retail inflation, which started showing signs of moderation in May, rose again to 7 percent in August. The central bank takes into account retail inflation while formulating its bi-monthly monetary policy.

 

The RBI Governor-led Monetary Policy Committee (MCP) is scheduled to begin its three-day meeting on Wednesday. The decision of this meeting will be announced on Friday 30 September.

 

The US central bank, the Federal Reserve, recently announced a 0.75 percent increase in interest rates to control inflation. After the third consecutive hike, the bank's benchmark funds rate has increased from 3 percent to 3.25 percent. Central banks in Britain and the European Union have also raised rates to control inflation.

 

Madan Sabnavis, Chief Economist, Bank of Baroda, said inflation in India remains at a high of around 7 percent and is unlikely to come down anytime soon.

 

RBI has been tasked by the government to ensure that retail inflation remains at 4 percent. Dhruv Aggarwal, Group CEO, Housing.com, says that amid resilient economic expansion and strong credit growth, controlling inflation will continue to be the RBI's biggest concern.

 

Banks will also hike home loan interest rates due to any increase in rates, he said. But we think that it will not have much impact, as the demand for the property has not been strong. This demand will pick up further during this festive season.

 

ICRA's Chief Economist Aditi Nair also expects a 50 basis point increase from the Monetary Policy Committee in September 2022.

 

Also Read: Indian Economy: By the end of the decade, India will overtake Britain to become the third largest economy in the world

1 Like 0 Dislike
Previous news Next news
Other news

Parliament Security Breach: Police reached the house of the mastermind of the Parliament ruckus, mother said - Lalit's marriage was fixed.

Darbhanga's Bahera police station once again reached the house of Lalit Jha, accused in the Parli

FIFA World Cup: Not only Messi, but Google also broke a 25-year-old record on Sunday night, Sundar Pichai gave information

FIFA World Cup: Craze was seen all over the world regarding the FIFA World Cup. Google also gave

Prime Minister of Pakistan got corona, Shehbaz Sharif got infected with this virus for the third time

A day after returning from a UK visit, Pakistan's Prime Minister Shahbaz Sharif tested positive f

Cyclone Dana Updates: Cyclone Dana became fierce! The sea started roaring, the airport closed, and 10 lakh people were evacuated.

There is increased vigilance in Odisha and West Bengal regarding the cyclone Dana. All preparatio

Indian Economy: NSO said- the foundation of domestic GDP is strong, Finance Minister said- India is successful in dealing with inflation

Based on strong economic fundamentals, various reforms, and business activities, India remains th

T20 WC: Australia suffered three big setbacks in three days, first lost to Afghanistan and India, now out of the tournament

Afghanistan has made it to the semi-finals by defeating Bangladesh. With this, the Australian tea

Prime Minister Modi: India is not hesitant to take independent policy under Modi's leadership: JP Nadda

Under the leadership of Prime Minister Modi, India has changed in the last nine years and now he

China plans to triple its nuclear arsenal to 900 by 2035: report

China is considering tripling its nuclear warhead stockpile to 900 by 2035, as tensions with the

Delhi High Court : Tamil Nadu government's plea rejected in Supreme Court, challenging HC's decision to approve RSS march

The Supreme Court has dismissed a petition filed by the Tamil Nadu government against the march o

Budget Session 2023: PM will reply to President's address today, BJP MP demands action on Rahul Gandhi

The discussion began on Tuesday after a deadlock continued during the budget session of Parliamen

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash