Retail inflation spike in May might cause RBI to revisit focus on growth risks: Oxford Economics

RBI might have to focus on growth risks again, says Oxford Economics

There are different types of reforms, and the policies which have been implemented by the government and the ministry of finance to bring a stretch of a smile on the faces of the customers or the daily e uses of the financial instruments of The Financial institutions and that of the banks for the in prepayment of the loans for the loans availed during the time or before that.Retail inflation spike in May might cause RBI to revisit focus on growth risks: Oxford Economics

With the government’s body language and that of the RBI, it is not likely to remove any accommodation that has been implemented for supporting the people during this time of the pandemic. However, it has been noticed that the uncertainties in the fluctuations took place during the month of May. It has all so highlighted the inflationary effects of May. Now, when the recovery is in the loop of quiet and uncertain shadow, it reflects a matter of concern for the economy.

According to Oxford economics, it is revealed that the consumer price index in May took a considerable hike, forcing RBI to move its concentration towards the risks associated with the growth of the economy.

However, there is still an expectancy of not seeing any hike in the interest rates likely during this year. However, on the other hand, it has also been highlighted that situations not like that of the for the last year 2020 lockdowns are not as strict as compared to this year where more movement for the people goods and services have been allowed.

Certain factors in the market like that of the consumer price index, wholesale price index and demand pressure create a significant role.

Positive slow in the oil price and the protein-rich items have touched about inflation of 6% high in May. As a result, the Reserve Bank of India(RBI) has to reduce the interest rate, putting some pressure on the comfort zone and some uncertainties for the terms of the period.


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