To control the ever-increasing inflation in the country, in the first week of May, the Reserve Bank of India (RBI) had hurriedly called a meeting of the MPC and increased the repo rates by 0.40 percent. At the same time, RBI Governor Shaktikanta Das has again indicated an increase in policy rates.
After the announcement of reducing the excise duty on petrol and diesel by the Central Government, now RBI Governor Shaktikanta Das said that the possibility of a further increase in repo rates could be done in the next meeting. During an interview with an English TV channel, he said the policy rates were raised to 4.40 earlier this month. Now, these can be increased to 5.15 percent, which was the level before Corona. It is worth noting that the next meeting of the RBI Monetary Committee (MPC) is to be held in June, in which the decision to hike repo rates is likely to be taken.
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