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Mumbai12 hours earlier
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From April onwards, you may get higher interest on your Fixed Deposit (FD) lying in banks. However, if you take a loan from the bank, then you may have to pay more interest. This is because the Reserve Bank of India (RBI) is planning to raise the rates. Banks will raise interest rates on both deposits and loans when the RBI increases the interest. Rates will be increased because inflation has to be controlled.
Plan to control inflation
According to analysts, the RBI may raise rates if inflation does not come under control. The first meeting of the new fiscal year will start in the first week of April. In the last two quarters, the rate of inflation has been higher than the RBI’s target. The RBI target is between 2-6%. If it exceeds the target during January-March, RBI will try to keep it under control by raising rates.
According to analysts, the RBI is planning to bring down the rate of inflation in any way, although the inflation rate is still exceeding its target. The rate of inflation has been more than 6% in the last two quarters i.e. September and December quarter.
RBI has to tell why inflation is high
RBI has to tell the government in writing how the inflation target set by its Monetary Policy Committee has been higher and why RBI has failed in this. The RBI will also need to suggest remedial action, although there is a difficulty before the RBI that if it increases any rate for reform then a new risk in Asia’s third largest economy It would be like a hug.
Time will also have to be told to control inflation
By law, RBI also has to tell how much time inflation can be brought under control. The RBI has kept the rates intact in the last four consecutive meetings to increase growth. During this time, he also separately announced plans to provide additional liquidity to combat Corona.
Custom duty cut for edible oil, lentils and oilseeds
On the other hand, the government has cut customs duty on commodities like pulses, edible oil and oilseeds to help ease some price pressures. The Consumer Price Index (CPI) and Index of Industrial Production (IIP) data are due today. It is expected that CPI may decline marginally. The brokerage firm estimates the CPI rate to be around 5.40% in January.