RBI On Inflation: In the last five Monetary Policy Committee meetings, the RBI decided to increase the repo rate to curb inflation, as a result of which the retail inflation rate has come down from 7.79 per cent in April 2022 to 5.72 per cent in December 2022. RBI is now heaving a sigh of relief due to reduction in inflation rate. RBI has said in its monthly bulletin that the Monetary Policy Committee has achieved its first milestone i.e. floor after the retail inflation rate came down to 6 percent.
In the bulletin issued for January 2023, RBI said that the macroeconomic stability of the Indian economy has improved. The inflation rate has come within the tolerance band of RBI, as well as the figures are showing that the current account deficit may come down. RBI said in its bulletin that it is clear from the recent data that RBI’s monetary policy has crossed its first floor by bringing inflation within the tolerance band. Now the target of RBI is how to further reduce inflation in 2023 so that the target of inflation for 2024 can be achieved.
A sigh of relief can be taken from the things said in the RBI bulletin. Because the meeting of the Monetary Policy Committee of RBI is going to be held in the month of February. And it is believed that RBI should not make any change in policy rates in the upcoming meeting. Policy rates should remain the same.
In April 2022, the retail inflation rate had reached 7.79 per cent, after which the RBI increased the repo rate in five monetary policy meetings to control inflation. The repo rate has increased from 4 percent to 6.25 percent. Due to which the loan became expensive. People’s EMI has become expensive. Now it is expected that the process of expensive loans can stop here.
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