Beware..! Shaktikanta Das's toughest decision..!?

Rising inflation in the world is affecting the economy, and not only india but the entire world has been hit hard to deal with this. Recently, the european Central bank has increased its benchmark interest rate from -0.5 percent to 0.75 percent to control inflation. This is expected to have a huge liquidity impact on the european market. The situation in india has turned slightly worse. India's august retail inflation took a toll, with the country's retail inflation rising to 7 percent in august, according to data released by the central government. In July, it is noteworthy that it was about 6.71 percent.
In Rural areas, the country's inflation in august was 7.15 percent based on the data released by the National Statistics Office, and 6.72 percent in urban areas. With this, 7 percent is the total inflation. It was 6.71 percent in July and 5.30 percent in august last year. In July, amid low inflation, the RBI was expected to ease monetary policy. The repo rate is expected to be hiked again but with inflation now hovering around 7 percent. By a large margin the RBI has already raised interest rates, the new rate hike will have a big impact. With retail inflation above the RBI target of 6 percent, inflation rose in august over July. Thus, in its monetary policy meeting which is to be held at the end of september, the RBI is expected to raise the interest rate.If the RBI raises the interest rate, the interest rate for the loans will necessarily increase, and the banks have already reached the pre-corona interest rate, and the new interest rate will make people suffer in a big way. When the income of the people does not increase in a big way, this series of interest rates increases, and the price increase will cause a big impact. So lets be prepared for the september interest rate hike.
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shaktikanta das

Sowmiya Sriram

13/09/2022 06:51 PM