New Delhi: On the inflation front, the possibility of relief for Indians still seems distant. A decision by the Central Bank of America can increase India’s inflation. So Indian citizens may have to face inflation again. On March 22, the US Federal Reserve Bank (Federal Reserve Bank of America) may once again take strong steps to control inflation there and Indians will be hit by it.
The central bank may increase the interest rate
To control inflation, the central bank can increase the interest rate. If this decision is taken, then the Reserve Bank of India will also have to decide on increasing the repo rate. Inflation has plagued India. If the interest rate increases then your EMI will increase. It is being claimed that the US central bank is adamant about increasing the interest rate. Bank chairman Jerome Powell has indicated this. He has not disclosed this yet. However, the likelihood of this decision is predicted. According to an estimate, the central bank may hike by 0.50% this time. This will be the second time in a row that the interest rate will increase by 0.50%. Earlier, the Federal Reserve raised rates by 0.75% basis points consecutively.
Inflation figures show no signs of abating
US inflation data is showing no signs of abating. After Powell’s signal, the current market price has increased between 5.5 to 5.75%. The decision of the US central bank will have a direct impact on the Indian market. To curb inflation, the Reserve Bank of India will also have to wait for the Federal Reserve. Recently, RBI has increased the repo rate by 0.25%. Interest rates are likely to increase by 25 to 35 basis points in the coming days. The central bank of India has increased the repo rate by 2.50 percent from May 2022 to February 2023. Due to this, the burden of EMI has fallen on the pocket of the customers.
