new Delhi. There has been a lot of speculation about the Indian economy for some time. All the agencies around the world are talking about India’s rising economy. The recent Oxford Economics report has revealed the shocking thing. Oxford Economics has said in its report that inflation has reached the highest level of 6 and a half years in the country. However, the agency has also emphasized that the country’s economy is seeing rapid improvement. In such a situation, the RBI may turn its softening stance in policy interest rates to the other side. Let us also tell you what else Oxford Economics has said in its report.
Oxford Economics report on inflation
According to the report, inflation based on the Consumer Price Index has come to a high before the Kovid-19 in October. Prices have risen sharply in all but fuel. According to the report, inflation will go to its maximum level in the fourth quarter. In this case, more vigilance will have to be exercised in this case in 2021. In October, retail inflation rose to a six-and-a-half year high of 7.61 per cent due to increase in prices of eggs and vegetables. Which is more than the RBI estimate. Whereas retail inflation stood at 7.27 per cent in the month of September.
RBI can increase interest rates
According to Oxford University, the Reserve Bank of India can now end the softening trend in policy interest rates. According to the report, in the coming days, RBI will either accelerate the interest rates or try to keep it flat. Oxford University says that the Indian economy is expanding rapidly.