Mumbai. Domestic rating agency Crisil said on Friday that the Reserve Bank of India may cut rates further by 0.25 per cent during the policy review next week, although inflation remains high. Regarding inflation, Crisil said that the situation is such that consumers have to pay more for food items, while farmers are getting lower prices due to reduction in wholesale prices. Many analysts have expressed hope that the RBI will continue to cut policy rates to boost the economy . Significantly, there is a possibility of a decrease in the size of the economy in the financial year 2020-21.
The RBI has cut rates by a total of 1.15 percent since the outbreak of the corona virus epidemic. The meeting of the Monetary Policy Committee (MPC), chaired by the RBI governor , is scheduled for three days from August 4 and the central bank will announce its decision on August 6. According to economists at Crisil's research arm, "After considering all aspects, we believe that growth concerns will still dominate inflation and the Reserve Bank of India is expected to raise the repo rate in the August policy review." 0.25 per cent will be cut. ”He said that consumer prices could go up due to the interruption in movement due to lockdown. Economists said that the fall in wholesale inflation is not good for farmers' income, while rising consumer inflation destroys the purchasing power of the common people.