RBI to Focus on Controlling Inflation; Result of first Monetary Review of FY Today

The Reserve Bank of India (RBI) faces the same issue as the central banks of the world’s second-largest economies in the first monetary policy review of the current financial year. That is, the recovery pace of the economy from the corona effect should be prioritized, or actions should be done to prevent inflation. Dr. Shaktikanta Das, Governor of the Reserve Bank of India, will announce the outcome of this review on Friday. His comment on inflation is eagerly anticipated by agencies, businesses, and the general public involved in the financial sector.

Bank will not raise policy rates this time too

Based on Das’s track record, most experts believe that bankers will not raise policy rates this time. However, it is also stated that, given the present rate of inflation, the decision to raise the lending rate cannot be postponed for an extended period of time.

Improvement in the Indian economy is still at an early stage

As per Finance Experts, the Indian economy is still in its early stages of recovery. In such a case, there is no chance of a modification in the statutory rates from the RBI this time. However, the RBI has the authority to revise previous projections of growth and inflation. The former projection of growth is likely to be reduced due to the continual rise in raw material prices and inflation.

US, UK, Canada and Brazil hike interest rates

For the time being, most central banks appear to be prioritizing inflation control. Interest rates have risen by up to 1% in the United States, the United Kingdom, Canada, and Brazil. The political situation in many nations, including Peru, Venezuela, and Sri Lanka, has grown highly volatile as a result of rising inflation. Recently, organizations such as the World Bank and ADB urged the world’s central banks to be ready to combat the threat of inflation. In India, inflation has reached an eight-month high.