They say it is almost certain that interest rates will rise by another 0.75% overall. In a recent interview, Reserve Bank Governor Shaktikant Das confirmed that interest rates on loans will continue to rise.
But he did not say how much it would rise, but said interest rates would rise until inflation was brought under control. Inflation is forecast to rise to 7.5 per cent in May as petrol and diesel prices remain the same as rising commodity prices.
Economists say tax cuts on petrol and diesel, as well as cuts in import taxes on cooking oil and a reduction in aviation fuel will not curb inflation. It is noteworthy that if the Reserve Bank raises the interest rate by 0.40%, 0.35% in August and 0.75% overall in August at this month’s monetary policy meeting, banks will also raise interest rates on loans, all of which will be imposed on the public.
Raise interest whenever people think of what burden bearers?