Winning Bizness Desk

Mumbai. The meeting of the three-day Monetary Policy Committee of the Reserve Bank of India is slated from 28 September to 30 September and after the retail inflation rate again reached the level of 7 percent in the month of August, it is believed that the RBI may increase the repo rate for the fourth consecutive time in the policy meeting. Global event and financial firm Morgan Stanley believes that the RBI can increase the repo rate by 0.50 percent.

What Report say ?

Morgan Stanley has said in his report that, earlier we had estimated that the repo rate could be increased by 35 basis points. But after the rise in inflation and the attitude of central banks around the world, we estimate that the repo rate can be increased by 0.50 percent. Earlier, RBI has increased the repo rate by 1.40 percent. For the first time in May 2022, the RBI has increased the repo rate by 40 basis points, for the second time in June by 50 basis points and then in August by 0.50 percent. And now once again the possibility of increasing the repo rate is being expressed.

Inflation may continue to rise

According to Morgan Stanley, retail inflation may remain between 7.1 and 7.4 per cent in the month of September due to expensive food items. However, after this, the inflation rate can come down till January-February and it can remain above 6 per cent till January-February 23. According to the report, due to the spurt in food inflation, the inflation rate may continue to rise. Since the sowing of paddy and pulses has decreased compared to last year, there is a danger of increasing import inflation due to rise in commodity prices and weakness in the rupee against the dollar. Due to which the retail inflation rate may continue to rise.