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.

Did you know?Explore Trending and Topic pages for more stories like this.

 

 

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

1 Like 0 Dislike
Previous news Next news
Other news

Shahbaz Sharif started pleading for an attack on Noor Khan and a ceasefire, what was Pakistan afraid of?

After the declaration of a ceasefire between India and Pakistan, the situation in both countries

Israel Hamas War: IDF killed three Hamas commanders, they were members of the most special brigade of the terrorist organization

Many days have passed since the war between Israel and Hamas, but till now the war between the tw

Running AC All Night? Here’s How Many Hours an Air Conditioner Can Safely Operate

Can Running an AC for Long Hours Cause a Fire?

 

With temperatures rising sh

JEE Main Admit Card 2022 (OUT): Admit card for JEE Main exam released, here's how to download

JEE Main Admit Card 2022 (OUT): After a long wait, the National Testing Agency (NTA) has finally

President Poll: How the votes are counted, how many votes will decide the victory? Learn the maths of counting votes for the presidential election

The presidential election results will be out today. NDA candidate Draupadi Murmu will win or the

RCB vs KKR: RCB lost the first match under Kohli's captaincy in IPL 2023, Virat himself told the culprit

Under the captaincy of Virat Kohli, Royal Challengers Bangalore have faced defeat after two conse

Plane Crash in Baramati: Flight attendant Pinky Mali had gotten married four years ago and had come to her village two and a half months ago.

Maharashtra Deputy Chief Minister Ajit Pawar has died in a plane crash in Baramati, Pune district

A child trapped 38 feet below in borewell: 36 feet pit dug to take out the innocent; 5 feet more will be dug

Rescue is going on for about 30 hours for 6-year-old innocent Tanmay who fell in a borewell in Ma

Despite good performance, Ashwin will not be able to make a place in the World Cup team, the former AUS captain claimed.

Ravichandran Ashwin returned to the ODI team after 20 months. Ashwin's performance in the three-m

BJP's bet for President: Manthan on women or tribals; The names of Anandi, Anusuya, and Draupadi are at the fore in the race.

The country will get a new President on the 25th of next month. The enrollment process is going o

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