MUMBAI: State Bank of India has said that it will provide an impetus to end interest rate hikes after inflation eased in November.
Regarding this, the bank’s economists have said:
Retail price inflation eased to 5.88 per cent in November, falling within the RBI’s target to maintain. This year, for the first time, inflation has come within the RBI’s target.
As a result, there is a possibility that the Reserve Bank will continue to increase the interest rate.
RBI has increased interest rates by 2.25 percent since last May. This move by RBI has helped bring inflation under control.
But unless US inflation is under control, the country’s central bank, the Federal Reserve, may have to raise interest rates.
This will lead to capital outflows from emerging markets. As a result, there will be more volatility in the value of the rupee.
In the period from current December to January next year, inflation is likely to pick up again and rise to 6.5 to 6.7 percent.
This has been stated.
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