3min chapter

Finshots Daily cover image

RBI's fictional letter to the Government - on inflation

Finshots Daily

CHAPTER

Can We Really Control the Prices of Onions and Tomatoes Using Interest Rates?

Since the pandemic, we have kept a hawk's eye on inflation. Since April though, we've hiked interest rates to 5.90 percent. But things still quite aren't working out. We can't tell how much of this inflation is due to demand spikes and how much is due to supply problems. Even the US inflation is at a 40-year high. Times are tough. Any way we're going to increase, any way we'regoing to increase interest rates even further when we meet in the first week of December. That's probably the only way to anchor expectations and rein in the prices. And we believe we can get inflation to 5 percent in April to June of 20

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