‘Clarifying To Government Needed If Situation Continues For 5 Months’: RBI Under Pressure For Surging Inflation
The rate of inflation has been going above the band (2 to 6%) set by the Reserve Bank of India (RBI) for the last four months. If this situation continues for the next five months, then the Reserve Bank may have to explain to the government as per the rules why it has not been able to control inflation. By the way, by suddenly increasing the repo rate by 0.40% in May 2022, the RBI has made it clear that it is now fully prepared to fight inflation. However, an internal assessment of his also says that it will take six to eight months for his steps to having an effect. At the same time, other external agencies are also assessing that due to the global situation, the prick of inflation will be prolonged this time. Sources say that even when such a situation arises, there is no ob...
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