A recent press report said that International Monetary Fund (IMF) has reported that the Reserve Bank of India’s policy to increase the interest rate is to control inflation is a correct action. The IMF had stated this in its report produced during the Credit Policy Review Meeting.
Reports said that in developing countries such as India, China and Korea the pressure due to inflation is increasing day by day, and that the Reserve Bank of India is also taking action to control inflation. It also said that in spite of the consecutive hike in key interest rates since March, inflation has continued to increase and it is nearing Double Digit.
Reports from International Monetary Fund in its Regional Outlook for Asia-Pacific Region said that the impact of inflation has hit the industry which has resulted in slow output. It also said that the industries are trying to put a pause for regular interest rate hikes so that their output will not get affected report given by. The hike in lending rates has made home loan and other retail loans dearer to the borrowers.