Russia-Ukraine War: RBI may increase the repo rate by 0.75 percent by August, Ukraine crisis also due to an increase in inflation

Posted on 17th May 2022 03:50 pm by rohit kumar

The Russia-Ukraine war has a major role in the rising inflation in the country, SBI economists claimed on Monday. He said that 59 percent of the geopolitical tensions caused by the ongoing war between Russia and Ukraine contributed to the rise in inflation. SBI economists said that in the period of rising inflation, the inflation figure reached the level of 7.8 percent in April. He said that the RBI is once again ready to increase the repo rate to 5.15 percent before the epidemic.

 

 

Taking February as the basis, the effect of the Russo-Ukraine war on inflation has been studied. It has been found in this research that due to the ongoing war between these two countries, inflation in food, fuel, light, and transport has increased by 52 percent. Apart from this, due to the increase in input cost in the FMCG sector, the prices of commodities have increased by up to seven percent.

 

 

According to SBI Ecowrap, economists say that there is no hope of getting relief from rising inflation at the moment. At the same time, he says that there is a difference in the rising prices in urban and rural areas. The reason behind the increase in inflation in urban areas is an increase in the price of petroleum, whereas, in rural areas, the most effective has been seen due to an increase in food prices.

 

 According to a report by SBI, by August, the central bank will increase the repo rate by 75 bps or 0.75 percent. The second meeting of this financial year will be held in June and the third meeting in August. The report said that the RBI will increase the repo rate to 5.25 percent. It is currently at 4.5 percent. After August, the matter of increasing the rates may slow down a bit.

 

Along with this, economists have also asked RBI to look into the steps being taken by it. SBI economists have also asked SBI to look into whether these steps can bring down inflation in a meaningful way if the war-related standoff between Russia and Ukraine is not resolved soon.

 

Also Read: RBI On Cryptocurrency: RBI's big statement on cryptocurrencies, said - it threatens the dollarization of a part of the economy

Other news

After commenting on Premananda Maharaj, the successor of Jagadguru Rambhadracharya gave clarification, saying a big thing

After an interview with Tulsi Peethadheeswar Jagadguru Swami Rambhadracharya, his successor Achar

Elvish Yadav Case: Elvish reached Noida police station with the convoy at midnight, answered fearfully for three hours; crowd outside the police station

Bigg Boss winner Elvish Yadav appeared before Noida Police in connection with the case of supplyi

Their Father used to work in the factory, mother used to do cleaning work; Messi made Argentina world champion after 36 years

In his fifth and final World Cup, Lionel Messi also fulfilled the dream he had been dreaming of s

Will CAA be banned? The hearing will be held in the Supreme Court today, more than 200 petitions filed in protest

Citizenship Amendment Act: The petitions filed against the Citizenship Amendment Act will be hear

COVID-19: Corona infection once again gained momentum in the country, 636 new cases in 24 hours, JN.1 patients crossed 200.

636 new cases of corona infection have been reported in the country, due to which the number of p

Gadgets are at risk of deteriorating body structure: Hump is emerging, fingers are twisting due to mobile, brain capacity is decreasing

Humpbacked back, bent claws and straight elbows up to 90 degrees, a small brain, and double-folde

Why did R Ashwin silence the panelist as soon as MS Dhoni's name came up? He said- don't talk about him...

Chennai Super Kings are in poor form in IPL 2025. CSK has won only two out of 7 matches so far an

'Delhi's dilapidated roads will be repaired before the elections', CM Atishi and Kejriwal told the priority of the government

Former CM Arvind Kejriwal and CM Atishi held a press conference regarding the bad roads of the ca

Elvish Yadav's problems may increase, and Maneka Gandhi's organization filed a case; Read what the whole matter

YouTuber Elvish Yadav is in the news after winning Bigg Boss OTT-2 and has been embroiled in cont

Those high-profile seats of the first phase, from where eight Union Ministers, two former CMs, and a former Governor are in the fray, know the political equation.

Voting is taking place in the country today for the first phase. Eight Union ministers, two forme