India's Rising Inflation could be a pain..!?

Sowmiya Sriram
India's Rising Inflation could be a pain..!?

RBI governor Shaktikanta Das today announced the outcome of the first two-day monetary policy meeting of the 2022-23 financial year, which began on april 6, with the world being hit hard by inflation. RBI governor Shaktikanta Das said the rise in crude oil prices would have a major impact on the indian market. He also said that the impact of rising inflation on cooking oil would continue for the next few months.
The RBI has forecast inflation at 6.3% in the first quarter, 5% in the second quarter, 5.4% in the third quarter, and 5.1% in the fourth quarter. The RBI has forecast economic growth of 16.2% in the first quarter, 6.2% in the second quarter, 4.1% in the third quarter, and 4% in the fourth quarter.
It has reduced India's real GDP growth rate from 7.8 percent to 7.2 percent in the current financial year. Meanwhile, inflation rose to 5.7 percent from 4.5 percent, the Reserve bank said.
 This will force the investment market. At the end of the first monetary policy meeting of the Reserve bank, RBI governor Shaktikanta Das has announced that the repo rate will remain unchanged at 4% for the next two months, while the MSF and banking rate will remain unchanged at 4.25%.
This is likely to raise interest rates for banks that have not yet raised interest rates on deposits. Similarly, surplus money in commercial banks is likely to go to RBI through a reverse repo rate hike.
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