Repo rate can be increased by 40 basis points.
Next week is the meeting of the Monetary Policy Committee of the Reserve Bank of India. Bank of America Securities believes that RBI may again increase the repo rate by 40 basis points.
Important of Reserve Bank of India next week monetary policy committee ,RBI MPC Meeting) meeting took place. Foreign brokerage company Bank of America Securities believes that in the meeting of the Monetary Policy Committee to be held next week, the RBI will again increase the repo rate.Repo rate rise) may increase by 0.40 percent. In the month of May, the Reserve Bank suddenly increased the repo rate by 40 basis points to 4.4 percent. In order to control the rising inflation, the RBI had increased the policy rate. The brokerage company said in a report on Friday that the inflation figure is estimated to be 7 percent in May also, so the Reserve Bank is expected to take many more steps to control it. After this increase, the repo rate will be 4.80 percent.
According to the report, the RBI may increase the repo rate by another 0.40 percent next week. Apart from this, in the August review also, it can increase by 0.35 percent. If this does not happen, then the RBI can make up its mind to increase by 0.50 percent next week and 0.25 percent in August. RBI Governor Shaktikanta Das recently said that given the pressure to bring inflation within a satisfactory level of 6 per cent, another hike in the policy rate is not a big deal.
Inflation exceeds RBI’s limit for the fourth consecutive month
In the month of April, the wholesale inflation rate (WPI for April) rose to 15.08 percent, which is the highest level in nine years. Wholesale inflation stood at 14.55 per cent in the month of March. The rise in inflation rate is much higher than the market estimate. Retail inflation has also reached a new high of 8 years. Retail inflation has reached 7.79 percent in April. This jump in inflation has been seen due to the rise in the prices of food items and oil. This level of retail inflation is the highest level ever since May 2014. This is the fourth consecutive month that retail inflation has crossed 6 per cent. The Reserve Bank has kept the upper limit for retail inflation at 6 percent.
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