RBI may not raise interest rates: PMEAC

“I don’t think the RBI will revise interest rates in the policy review. As far as the monetary policy is concerned, it has followed an accommodative policy, and unless inflation pressures are very strong, there may not be any change in the stance,” Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan told reporters. He said the RBI might wait to make any change in the policy rates.

The former RBI Governor further said prices will begin to rise from now on, mainly due to the low base of last year and rising food prices. “By the end of the year, you will get an inflation rate even on wholesale price index of about 6 per cent,” he added. Inflation has been on the rise on the back of rising food prices and stood at 0.70 per cent for the week ending September 26. Rangarajan said there is always a seasonal decline in prices in November and December.

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