new Delhi. The inflation rate data has also been released by the Reserve Bank of India after estimates of no change in repo rates and the GDP figures being positive. According to the RBI, inflation could be around 7 per cent in the third quarter. Whereas in the fourth quarter this estimate is expected to be less than 6 percent. Let us also tell you what kind of data has been presented by RBI on the retail inflation rate.
Retail inflation figures
Shaktikanta Das, Governor of the Reserve Bank of India, said on Friday that retail inflation in the country is expected to be 6.8 per cent in the third quarter of the current financial year 2020-21, but is expected to come down to 5.8 per cent in the fourth quarter. The RBI estimates that retail inflation could range between 5.2 per cent and 4.6 per cent in the first half of the next financial year.
There is a possibility of softening
Announcing the decision taken at the meeting of the central six-member Monetary Policy Committee (MPC), RBI gunner Shaktikanta Das said that the MPC estimates inflation may remain high, but in the winter months, based on the Consumer Price Index (CPI) Retail inflation is likely to moderate.
No change in repo rates
Earlier on Friday, the RBI announced the continuation of the key interest rate ie repo rate at 4 per cent. RBI has not made any change in the repo rate for the third consecutive time. There is also no change in reverse repo rate. Following the decision taken at the meeting of the Central Six-member Monetary Policy Committee (MPC), RBI Gunwar Shaktikanta Das announced to keep the repo rate at four per cent.
Interest rates are stable since May
Repo rate is the interest rate at which the central bank provides short-term loans to commercial banks. At the same time, the reverse rate is the interest rate at which the central bank receives deposits from commercial banks. The repo rate of RBI is currently 4 percent while the reverse repo rate is 3.35 percent. RBI has indicated to maintain an accommodative stance further in the current financial year.