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In light of rising inflation, the Reserve Bank of India is unlikely to change interest rates

<p>The Reserve Bank of India (RBI) looks prepared to keep the existing interest rate in its next monetary policy review despite growing inflationary concerns. According to experts, the RBI will decide to maintain constant borrowing prices in an effort to maintain the current pace of economic development. The governor of the RBI chairs the six-person Monetary Policy Committee (MPC), which will meet from August 8 to 10. Governor Shaktikanta Das will announce the policy decision on August 10.<img decoding=”async” class=”alignnone wp-image-116561″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-in-light-of-rising-inflation-the-reserve-bank-of-india-is-unlikely-to-change-interest-rates-download-2023-08-07t172815.526.jpg” alt=”theindiaprint.com in light of rising inflation the reserve bank of india is unlikely to change interest rates download 2023 08 07t172815.526″ width=”1027″ height=”570″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-in-light-of-rising-inflation-the-reserve-bank-of-india-is-unlikely-to-change-interest-rates-download-2023-08-07t172815.526.jpg 301w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-in-light-of-rising-inflation-the-reserve-bank-of-india-is-unlikely-to-change-interest-rates-download-2023-08-07t172815.526-150×83.jpg 150w” sizes=”(max-width: 1027px) 100vw, 1027px” title=”In light of rising inflation, the Reserve Bank of India is unlikely to change interest rates 3″></p>
<p>The repo rate has consistently remained at 6.5 percent since February, despite the RBI starting a process to raise interest rates in May of last year. This resulted in no changes to the prime lending rate throughout the course of the previous two bimonthly policy evaluations, which were carried out in April and June.</p>
<p>The managing director of Punjab & Sind Bank, Swaroop Kumar Saha, emphasized that a variety of variables, including global trends, are taken into account by the RBI. As a result, the RBI’s position will unavoidably be influenced by recent trends towards higher interest rates by different central banks, as shown by the US Federal Reserve. Given the overall situation, Saha said, “I expect the RBI retaining the repo rate at its current level. It’s likely that the interest rate will remain unchanged for the next two to three quarters in the case of a stable international environment.</p>
<p>The managing director of LIC Housing Finance, Tribhuvan Adhikari, said that the central bank is likely to maintain its present position on interest rates at the next monetary policy review. He stressed that it is anticipated that the interest rate won’t change in the near future.</p>
<p>YES Bank Chief Economist Indranil Pan stressed that there is minimal opportunity for rate modifications despite inflation concerns. He made special note of the fact that rising prices for necessities like tomatoes have not raised anticipation of impending rate hikes.</p>
<p>The Indian government has given the central bank the responsibility of keeping retail inflation at 4%, with a permissible range of variation of up to 2% in each direction. Retail inflation in the nation, as measured by the consumer price index, rose to a three-month high of 4.81 percent in June. However, this amount is still below the RBI’s tolerance guideline of 6%.</p>
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