RBI said in its bulletin, the effect of increase in repo rate is visible, there is a huge reduction in inflation

RBI Bulletin: RBI has said in its bulletin that the effect of monetary policy is visible and there has been a drastic reduction in the retail inflation rate. However, it was said in the bulletin that until the inflation rate does not come down to the level of 4 per cent, the strictness towards RBI will continue. The government has fixed a tolerance band of 2 to 6 per cent inflation rate for the RBI, with a target of keeping it stable at 4 per cent with a plus or minus of 2 per cent.

In the inflation data released for the month of March, the retail inflation rate has come down to 5.66 percent. Announcing the monetary policy on April 6, the RBI did not make any change in the policy rates and it was decided to keep the repo rate constant at 6.50 percent. An article has been written in the Bulletin headed by RBI Deputy Governor Michael Debabrata Patra, which said that the global economic situation is surrounded by extreme uncertainty. According to the bulletin, the demand situation in India remains strong. Demand is getting support from service sectors like hotels. It further said that there are good signs for the economy due to the expectation of a good rabi crop, thrust on infrastructure and increased corporate investment in select sectors.

In an article titled ‘State of the Economy’ in the RBI Bulletin, it has been said, the effect of monetary policy has been very good. Inflation has come down drastically. But the strictness will continue till the inflation rate is brought to the target of four per cent or close to it. In the article written in the bulletin, it was said that due to the steps taken under the monetary policy, the retail inflation rate came down to 5.66 percent in March this year, which reached 7.8 percent in April 2022. It is expected to further decrease and remain at 5.2 per cent in the January-March quarter of 2023-24.

After the inflation rate was 7.8 percent in April 2022, RBI increased the repo rate by 2.50 percent in six times, tightening the monetary policy from May 2022. The repo rate was increased from 4 percent to 6.50 percent. But if there is a decrease in inflation, the process of reduction in interest rates can also start. Experts believe that from the beginning of 2024, policy rates will start coming down. Brokerage company Nomura has predicted that rates may be cut from October.

read this also

ITC Share Update: ITC becomes the seventh largest company in the country leaving behind HDFC, Infosys can snatch the sixth position