RBI’s Monetary Policy Committee meeting from today, there may be another increase in interest rates

The three-day Monetary Policy Committee meeting of RBI, proposed in December, is starting from Monday (December 05, 2022). In this meeting, a decision can be taken to increase the interest rate to control inflation. Along with this, it is also being expected that RBI Governor Shaktikanta Das can share the reasons given by the bank to the central government for not reducing inflation.

Let me tell you, on November 3, there was a meeting of the Monetary Policy Committee of RBI, in which the causes of inflation were discussed. As per Section 45ZN of the RBI Act, whenever the central bank fails to achieve the target of keeping inflation under control, it has to send a report to the central government, stating the reasons for which within a specified period. As a result, it has failed to control inflation.

Repo rate can go beyond 6 percent
The interest rate has been increased rapidly by the RBI in the last few months. Experts believe that this trend will continue this time also and the interest rate may increase by 25-30 basis points. Interest rates were increased in the last monetary committee meeting. Currently the repo rate is 5.90 percent. If the interest rates are increased this time too, it can reach beyond 6.00 percent.

High inflation
According to the retail inflation data released by the government, inflation has come down to 6.77 percent in October. It was 7.41 percent in September. The upshot, however, is that inflation continues to remain above the RBI mandated level of 2-6 per cent.