Rupee is trading at or around its all-time low. A depreciating rupee typically makes imported goods relatively costlier. India’s retail inflation was at 4.3 per cent in January, hitting a five-month low. This was mainly on account the drop in food prices; the fresh produce helped moderate inflationary pressures. The country was facing high food inflation over the past few months, mainly due to an increase in the inflation of vegetables, fruits, oils and fats. The RBI has recently reduced the repo rate by 25 basis points to put a thrust on growth and consumption in the economy. The future course of rate cut will be dependent on the incoming macro data, Centrum Broking said in a report. The repo rate is the rate of interest at which the RBI lends to other banks. It is the interest rate the central bank lends to banks to fund lending to other businesses, such as mortgages, loans and insurance companies, among other things. It has been elevated at 6.5 per cent for nearly five years to keep inflation contained.
Rupee is trading at or around its all-time low. A depreciati….
