MUMBAI: The Reserve Bank of India (RBI) has announced a sudden rise in interest rates without any forecast, citing various reasons behind its rise.
The main reason is said to be the increase in petrol and diesel prices.
One source said that the RBI had asked the government to reduce the excise duty on fuel, but since the government did not accept it, it decided to raise the interest rate.
Commenting on this, an official said: “Petrol prices have been steadily rising in recent times and the prices of commodities have already gone up.
Is causing.
Thus, for the third consecutive month, retail inflation has been surpassing the target set by the Reserve Bank.
However, the Reserve Bank was unable to persuade the government on the excise duty. Similarly, the state governments are not ready to reduce the excise duty this time. In this case, inflation
To deal with it, the Reserve Bank has come to a standstill.
It has immediately announced an interest rate hike of 0.40 per cent as the matter will get out of hand if it is further delayed.
Last year, the central government reduced the excise duty on petrol by Rs 5 and on diesel by Rs 10 to help control inflation. Also at that time, taxes were reduced in BJP-ruled states.
But this time, when no such efforts have paid off, the Reserve Bank of India has begun to stand alone and turn its sword against inflation.
Thus he said.
MUMBAI: The Reserve Bank of India (RBI) has announced a sudden rise in interest rates without any forecast, citing various reasons behind its rise.