Despite best efforts inflation still on a high

The inflation condition prevailing in the Indian market has disturbed the whole market equilibrium and that is why The Reserve Bank of India is under a lot of pressure. The Central Bank is doing every thing that it can to rein inflation.

As a part of such an effort RBI hiked repo and reverse repo rates eight times in the past one year due to which the interest rates have shoot up considerably causing a lot of disturbance for the banks and to keep their profit banks pass that hike to the borrowers, causing a lot of problems to the borrowers.

To give customers some comfort the bankers urged requested RBI to not top raise the repo and reverse-repo rate any more. But regardless that the inflation rate is still quite high then RBI’s comfort level and that is why economists expect RBI to continue raising rates to keep inflationary expectations under check.