{"id":11709,"date":"2019-08-03T12:52:04","date_gmt":"2019-08-03T07:22:04","guid":{"rendered":"https:\/\/www.antworksmoney.com\/blog\/?p=11709"},"modified":"2021-06-04T16:50:09","modified_gmt":"2021-06-04T11:20:09","slug":"expect-for-the-fourth-time-rbi-interest-rate-cut-in-august","status":"publish","type":"post","link":"https:\/\/www.antworksmoney.com\/blog\/expect-for-the-fourth-time-rbi-interest-rate-cut-in-august\/","title":{"rendered":"Expect For the Fourth Time RBI Interest Rate Cut in August"},"content":{"rendered":"\n

According to an Indian Economist, RBI is planning to cut rate of interest in the month<\/strong><\/a> of August the fourth time in a row majorly because of weak inflation and low rate of growth. <\/p>\n\n\n\n

The RBI reducing again the rates this\nmonth will be considered as the most aggressive step. Earlier only after the\nglobal financial crisis Reserve Bank of India (RBI) made subsequent cuts in\ninterest rate in a row.  <\/p>\n\n\n\n

The inflation rate of India has\nremained below 4% which is the central banks medium term target from almost a\nyear. It is not expected to grow until 2021. <\/p>\n\n\n\n

The growth rate of the country was lowered\nin the recent poll in congruence to the April quarterly economic survey inspite\nof the three cuts in the interest rate in the current year.  India is expected to grow in the 6.3 \u2013 7.2%\nrange in the every single quarter until the end March 2021. According to most\nof the economist, the annual growth forecasts were downgraded to 6.8% from 7.2%\nin the previous poll. <\/p>\n\n\n\n

The most of the experienced economist\ndenied when asked if the RBI need to take into consideration core inflation in\nplace of retail inflation as the key step for its monetary policy framework. <\/p>\n\n\n\n

The Senior Economist, Shilan Shah at Capital\nEconomics said, \u201cCore inflation is a better measure for underlying price\npressures than the headline rate is. So, it should give a better indication of\nwhere the economy is in terms of the economic cycle.\u201d  <\/p>\n\n\n\n

The factors like the procurement ability of the government, total supply of kharif, and status of monsoon will play a very important role in the actual impact of inflation. <\/p>\n\n\n\n

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