Former RBI Governor Raghuram Rajan said this shocking thing about inflation
Former RBI Governor Raghuram Rajan has said a shocking thing about inflation. In many big countries of the world including America and India, people are worried due to rising inflation. His budget is messed up. People are reducing many important expenses. Now Raghuram Rajan has said that inflation will increase further. They mean that inflation has not reached its peak yet. Raghuram Rajan also said that the US central bank Federal Reserve will have to take more steps to control inflation. After the US inflation figures come out in May • Rajan’s point of view assumes significance. In the US, May’s data on inflation came on Friday. In May it has reached 8.6 percent. It was 8.3 per cent in April.
Rajan talked about many issues including the economy, inflation. He also gave his view on Reception. He said that the recent jump in crude oil prices is yet to have some effect. He said that the financial market has come down. There may be a drop in it. He said that the cases of companies laying off employees are increasing. He said that right now it seems that we can avoid going into recession. However, the possibility of a mild recession sometime next year cannot be ruled out. That’s why the Federal Reserve needs to take big steps. He also said that the ECB is not left with much option once inflation reaches 8 per cent. There is a risk of imported inflation due to weakness in the euro. The ECB has to take steps in time. X
Raghuram Rajan has a deep understanding of the Global Economy and Financial Markets. He had already hinted at the 2008 Global Financial Crisis. During his tenure as the Governor of RBI in India, he removed the veil from the problem of bad loans of banks. He is currently Professor of Finance at the Booth School of Business at the University of Chicago. In India too, inflation has increased the difficulties of RBI and the government. RBI has increased the repo rate for two consecutive months. This has been done to prevent inflation from rising. However, due to the cost of debt, this can affect the economy growth.
