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Indian Economy: Expensive loans can slow down the pace of economic development of the country: Finance Secretary

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Indian Economy: The common man is troubled by rising inflation, but it is also bringing with it many other problems. Where the pocket of common man is getting cut due to inflation. But due to this the debt is also becoming expensive, which can have an impact on the economic development of the country.

Economic growth will be slow due to expensive loans
According to media reports, Finance Secretary of the Ministry of Finance TV Somanathan has said that if the RBI raises interest rates, then due to this the pace of economic growth of the country may slow down. At the same time, it is believed that when the RBI’s Monetary Policy Committee meeting will be held in June, the inflation forecast for 2022-23 can be increased. At present, in the Monetary Policy Committee of April, the RBI had projected an inflation rate of 5.7 percent in 2022-23. But the retail inflation rate in March has been 6.95 percent, which is more than the RBI’s fixed limit of 6 percent. In such a situation, in the June MPC meeting, the RBI can increase the inflation rate for 2022-23 by more than 5.7 percent.

RBI made loans expensive
Earlier, the emergency meeting of RBI’s Monetary Policy Committee was held from May 2 to 4. After which the RBI increased the repo rate by 40 basis points to 4.40 percent. After which the loan is becoming increasingly expensive, the EMI of the people is getting expensive. To say that RBI is making loans expensive to check inflation, but expensive EMI is troubling the common people more. Now the figures of retail inflation for the month of April are at 7.79 percent. After which it is believed that RBI can make the loan expensive again in the coming days.

Morgan Stanley downgrades GDP estimates
Earlier, Morgan Stanley has also said that due to rising inflation, rising crude oil prices and weak domestic demand, the pace of economic growth of the country. May slow down. The brokerage house in its report has reduced India’s economic growth forecast for the next two financial years. According to Morgan Stanley, India’s GDP is estimated to be 7.6 percent in the 2022-23 fiscal year, while in 2023-24 the GDP may be even less than 6.7 percent.

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