The new RBI credit policy would raise interest rates. On
The repo rate now stands revised to 5 percent and the reverse repo rate to 3.5 percent.
The repo rate is the interest charged by The Reserve Bank of
(RBI) on borrowings by commercial banks. India
It is also time for the apex bank to adopt a neutral policy rather than an accommodative policy as there have been rising consumer demands and recovery in private apex.
It is believed that the new policy would bring in many changes but economists and bankers are giving out different opinions about the credit policy.
Indian inflation is 10% and the economy is growing at a rate of over 7%. According to Jahangir Aziz, Chief Economist, JP Morgan, the primary focus of the RBI’s policy would be how quickly it could bring down the inflation, especially non food inflation.