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

Monkeypox reached 15 countries in 15 days: Quarantine necessary if symptoms are found in Belgium; Isolation ward for suspected patients in Mumbai

The world battling the corona epidemic is now increasingly vulnerable to monkeypox. The disease h

Aamir Khan was shocked by the sudden death of Zubeen Garg and made this emotional post in grief.

Singer Zubeen Garg, who cast a spell with his voice in Assam and Bollywood, is no more. He passed

Ponniyin Selvan 2 Trailer: PS 2 trailer launch in presence of Aishwarya Rai and Mani Ratnam

Ponniyin Selvan 2 Trailer: The trailer of Aishwarya Rai Bachchan's much-awaited film PS2 has been

Twitter-Musk Deal: Twitter sued Musk, then Allen tweeted and said- Oh look at the irony

A tug of war has begun between the micro-blogging site Twitter and Elon Musk. Twitter has filed a

All-Women Bench: Only the bench of women judges will hear matrimonial and bail matters today, for the third time such initiative of the Supreme Court

Today in the Supreme Court, the hearing of matrimonial disputes and bail matters will be heard on

Shah's special dialogue: Amit Shah saw Prithviraj with their wife Sonal, after 13 years came out after watching the film and said - let's go Hukum

Akshay Kumar starrer film Samrat Prithviraj had a special screening on Wednesday. The special gue

Pilibhit Encounter: Three Khalistani terrorists killed in encounter, two AK-47s recovered; had attacked a police post in Punjab

Three Khalistani terrorists killed in Pilibhit were accused of attacking a police post in Gurdasp

Ranveer Allahbadia: Even if he apologized, he did it with arrogance, Ranveer said- I will not give any explanation, I do not know how to joke

YouTuber Ranveer Allahabadia recently made controversial comments on family in the show 'India's

Taapsee Pannu confirmed her marriage with Mathias Boe, told the real reason for having a secret wedding, and said- 'I am worried...'

Taapsee Pannu Wedding: Actress Taapsee Pannu has been in the limelight for the past several days

Israel's new warning to the people of Iran, more than 600 people have died so far in the rapid attacks; Read the important points of the war.

The tension in Iran-Israel (Iran-Israel conflict) has now turned into a war. Iran's Supreme Leade