Relief From Inflation Likely: From October 2022, the common people are expected to get relief from inflation. This confidence has been expressed by the Governor of Reserve Bank of India (RBI) Shaktikanta Das. He said that inflation is expected to come down in the second half of the financial year 2022-23 (between October and March), which will ease the problems of the economy. He indicated that there will be no need for RBI to take tough monetary policy decisions when inflation comes down.
The RBI Governor said that at present, the supply outlook is looking good and all the indicators are indicating a better recovery of the economy between April and June in the first quarter of the financial year 2022-23. And we expect inflation to moderate in the second half of 2022-23.
Central banks around the world have been reeling from supply chain problems, rising commodity prices, and Russia’s attack on Ekrem. Due to these reasons, the inflation rate in India has been above the RBI’s tolerance level of 6 per cent since the beginning of this year, due to which the RBI has to increase the repo rate by 90 basis points. RBI has increased its inflation rate forecast from 5.7 percent to 6.7 percent.
However, this statement of RBI Governor Shaktikanta Das must have given relief to those people who are troubled by expensive EMIs due to costly loans. Also, after this statement, the possibility of interest rates becoming expensive in the coming days can be watered down. RBI’s monetary policy meeting is going to be held in August, in which many experts are expressing the possibility of RBI raising the repo rate again. But with the latest statement of the RBI governor, such fears can be dashed.