The central government and the Reserve bank have made important announcements and changes to address the rising inflation, rising prices and consequent trade slump and recession in India. There are some benefits to this change. At the same time there has been some phenomenon affecting the population.
Excise duty and import duty
We can see that the prices of many important commodities in india have come down due to the reduction in excise duty and import duty announced by the Central Government. This could reduce inflation by 35-40 basis points, or 0.35-0.40 per cent, sbi said in a research report.
Retail price inflation
SBI bank has forecast retail price inflation for May at 7.0 per cent, down 10 basis points from its earlier estimate of tax cuts.
Full impact
The full impact of the federal excise and import tax cuts will be felt in the coming months. In the current financial year, retail-based inflation is expected to average 6.5% -6.7%.
Reserve Bank
At the same time, the rupee has been saved from a sharp fall by the Reserve bank of India's interest rate hike. Market investors and traders are preparing in advance as the RBI governor has announced that interest rates will also rise in the june monetary policy meeting.
We have seen all the banks raise the interest rate on loans after the RBI raised the repo rate to 4.4 per cent. But most banks do not lend this interest rate increase to deposit funds. Deposit Funds While large sections of the population in india have bank banks as their main investment, the RBI has raised interest rates on loans but has not raised interest rates on deposits.
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