in view of the rising inflation the reduction in interest rates can be postponed

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New Delhi: The common man is troubled by the rising prices of vegetables, pulses and spices and rising inflation. Considering the green effect on his pocket, policy makers may consider postponing interest rate cuts in RBI’s policy review to be held in August. Experts say that policy makers may keep it as it is. Due to the heat and unseasonal rains, the prices of essential food items have increased across India. Tomato has reached Rs 150-160 per kg. The increased prices of ginger, bottle gourd and green chillies have reduced the taste of people’s food. Economists say that the members who set the policy rate will be forced to revise their inflation targets.

Significantly, RBI has not made any change in the rates of repo rates recently. Now everyone is waiting for whether the Reserve Bank will cut the repo rates. According to experts, at present, the expectation of a cut in interest rates is very less.

After tomato, now spices have become hot, the prices have reached the sky, the common man is sweating

what do experts say

HDFC Securities Head of Research Deepak Jasani told that at this time the change in repo rates cannot be done even according to liquidity. Because of this also, RBI has adopted the stance of stability in rates. At present, it is still visible above the target and inflation is also increasing. The RBI governor has said that inflation is expected to be maintained at 4 per cent. At the same time, Dharmakirti Joshi, Chief Economist of Crisil Ratings also said that RBI will maintain status quo on rates in the current financial year and will start cutting only in the March quarter of 2024.

Rajni Sinha, chief economist at CareEdge, says that vegetable prices tend to fluctuate in summer. In such a situation, the policy plan of RBI will not change now. Yes, the inflation target for the second half of FY2024 can definitely increase and the expectation of a rate cut can get a boost.

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Today the Finance Minister will hold a meeting

Finance Minister Nirmala Sitharaman will hold a meeting with the chiefs of public sector banks on Thursday. She will review the financial performance of the banks. This is the first review meeting after the financial results of the financial year 2022-23. In the last financial year, the profit record of public sector banks was Rs 1.04 lakh crore.

According to sources, apart from the financial performance, the progress card of the targets set for various government schemes will also be reviewed in the meeting. These schemes include Kisan Credit Card (KCC), Stand-up India, Pradhan Mantri Mudra Yojana and Emergency Credit Facility Guarantee Scheme launched to help enterprises affected by the COVID-19 pandemic. It is noteworthy that public sector banks had a net loss of Rs 85,390 crore in the financial year 2017-18. At the same time, in the year 2022-23, their profit reached Rs 1,04,649 crore. The country’s largest bank SBI’s share in the total profit was almost half.

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