Inflation based on the consumer price index (CPI), which stood at 7.4% in September, may rise and may continue to decline thanks to the reduction of the goods and the positive effects, according to the report published by the state of the economy. from the Reserve. Bank of India (RBI). However, he warned that the fight against inflation will be tough and long-lasting. The report also stated that connecting the inflation to the 4% target involves reaching two levels: first, bringing it under the upper limit of the 6% tolerance, and then bringing it down to the middle of the fork.
“This situation (of inflation) can slowly give rise to the repeated confusion of inflation caused by epidemics and geopolitical, but the reduction of inflation will bring back the consumer and business confidence, invigorating investment and improving India’s export competitiveness,” said the report, written by RBI officials, including Deputy Governor for Monetary Policy Michael Patra. The views expressed in this article are those of the authors and not of RBI.
The RBI raised the repo rate by 50 basis points (bps) to 5.9% in September, bringing the increase in the repo rate since May to 190 bps. The RBI has predicted that inflation will fall to 5% in the second quarter of the next financial year and that it will take two years to reach the central bank’s target of 4% with a fluctuation of 2% in each direction. Elon Musk’s Launches New Perfume Business to Buy Twitter
“The fight against inflation will be strong and long-lasting, due to the long-term and flexible nature of monetary policy,” the report said. If the RBI succeeds in bringing inflation down to 4%, it will boost India’s prospects as one of the fastest growing economies in the world, with a difference of differences in inflation are negative in the rest of the world, according to the report.
“This encouraging result will revive foreign investors, stabilize the market and provide long-term financial stability,” he said. The report seems to be confident about the country’s growth prospects and found that the overall economic activity remained stable. He said economic activity is poised to expand with housing demand accelerating as the allied sector recovers. The RBI report also said that strong credit growth and strong corporate and bank balance sheets are strengthening the economy.
“Recovery and growth in bank credit is driven by the lending issue. With continued economic activity, the increase in bank credit for working capital has increased in recent months, reflecting optimism about demand conditions,” the report said. 카지노사이트
Although the banks are quick to raise the lending rate around the repo rate, the deposit rate rose slowly. “Banks are quick to adjust their lending rates in relation to retail deposit rates,” the report said, adding that commercial banks’ mid-term deposit rates, which reflect credit card rates working on new deposits, increased by 26 points during the May- September period..
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