Reserve Bank of India increased repo rate, inflation will not come down

Reserve Bank of India increased repo rate, inflation will not come down

Reserve Bank of India increased the repo rate, inflation will not come down: Inflation is still a matter of concern. Still don’t expect inflation to come down year after year. Inflation is likely to remain above 4 percent for the next 12 months, in which case inflation will not come down. Rather, inflation is expected to be above the target, so people have to prepare themselves for inflation.

According to Das, there is a possibility that inflation will remain above 4 per cent for the next 12 months, in which case inflation will not come down. Rather, inflation is expected to remain above target. Das claims that the situation is slowly improving, but if inflation is to be controlled, there is no way without raising interest rates, so people have to be prepared to bear the brunt of inflation.

Reserve Bank of India increased the repo rate

As per the announcement made by Reserve Bank Governor Shaktikans Das, the Reserve Bank of India has increased the repo rate by 0.35 percent i.e. 35 basis points. Till now the repo rate was 5.90 percent, which has now increased to 6.25 percent. The Reserve Bank last increased the repo rate from 5.40 per cent to 5.90 per cent in September. Now after three months, the Reserve Bank has again increased the interest rate, the interest rate on all types of loans like home loan, auto loan, personal loan etc. will increase and the borrower will have to pay more installments.

What is the reason for increasing the repo rate

Increasing the repo rate of RBI like this is a matter of concern, but even bigger concern is the comment of Reserve Bank Governor Shaktikanta Das. Due to rising inflation, the Reserve Bank has had to increase the repo rate. The central government has no solution to deal with the recession, so the repo rate has been increased. This is not reducing inflation.