RBI May Increase Policy Rates Again In June

RBI may increase policy rates again in June: Governor Shaktikanta Das said, will take strict steps to control inflation.

Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday indicated that policy rates may be hiked once again in June to control inflation.

For the past four months, the inflation rate has remained above the target set by the RBI.

Das said that there will be some increase in rates, but nothing can be said about its quantum. He said that the policy rate can also reach more or less than 5.15 percent.

The next meeting of RBI’s Monetary Policy Committee (MPC) is to be held from June 6 to 8.

In May itself, the RBI had hiked the policy rates by 40 basis points in a surprise meeting of the MPC.

After this increase, the repo rate has gone up to 4.40 percent. This was the first change in rates in the last two years. Whereas the rates increased after about four years.

RBI may increase policy rates: The inflation forecast was raised in April.

In April this year, the RBI had raised the inflation forecast for the current financial year to 5.7 percent. Earlier, the inflation rate was estimated to be 4.5 percent.

Along with this, the growth rate estimate was also reduced from 7.8 percent to 7.2 percent in the financial year 2022-23.

Das said the government and the RBI are in the process of taking the next step to control inflation.

Several steps have been taken to control inflation.

Das said that the central bank has taken several steps in the last two to three months to control inflation.

On the other hand, the government has also taken measures like banning the export of wheat and cutting excise duty on petrol and diesel.

All these efforts together will have a serious impact on price rise, he added. According to the data, the retail inflation rate in April stood at 7.79 percent against 4.21 percent in April 2021.

Customs Duty Cut: Building a house will have to be cheaper, and car prices can also get relief

Reduction in import duty on many raw materials including steel, iron ore, plastic, and coking coal can reduce the cost of building houses as well as provide relief in the prices of cars and scooters.

Last Saturday, the government announced to reduce the excise duty on petrol and diesel along with import duty on various types of raw materials.

Now its effect is visible. Shree Cement on Monday announced a cut in the price of cement.

According to the estimates of the Engineering Export Promotion Council (EEPC), the decision of the government can lead to a fall in the price of steel by up to 15 percent.

Iron ore can also be cheaper by up to Rs 4000 per tonne. Due to lower transportation costs, the prices of other commodities are also likely to come down.

Experts say that the reduction in the cost of construction of the house will give relief to the genuine buyer.