Mumbai The Reserve Bank of India i.e. RBI’s Monetary Committee (MPC) will meet in Mumbai from Monday 7 April. After the meeting, on the date of Wednesday i.e. 9 April 2025, RBI Governor Sanjay Malhotra will give information about the decisions made in it. Millions of people are waiting for the results of RBI’s MPC meeting. The reason for this is the decision taken on the repo rate, reverse repo rate and the cash reserve ratio i.e. CRR. If it is decided to reduce the repo rate in the MPC meeting of RBI, then the interest rates on the loan are also reduced. Last time it was decided to reduce the repo rate by 0.25 per cent in the MPC meeting of RBI. Because of this, this time everyone will be eyeing whether the repo rate reduces the RBI and not.
RBI Governor Sanjay Malhotra will give information about the decisions of the MPC meeting on Wednesday.
Right now the repo rate is 6.25 percent. Since 2023, RBI continued to increase the repo rate. The reason for this was increasing inflation. It was retained for a long time after the repo rate reached 6.50 per cent. As a result, banks did not cut the interest rates of home and car loan. Last time when the RBI reduced the repo rate, there was not much fall in interest rates on the loan. In such a situation, if the RBI further cuts the repo rate in the MPC meeting, then the loan ie borrowers are expected to get relief from low interest rate. A report by Bank of Baroda earlier said that in 2025, the RBI could reduce the repo rate by 0.75 per cent.
There is also a possibility of increasing inflation due to reduced repo rate. The reason for this is that due to reduced repo rate, banks have more money and they also reach people’s hands. Due to this, the price of things starts increasing. Inflation has decreased slightly since December 2024, but there is a possibility of recession due to the ongoing war between Russia and Ukraine and now Donald Trump has started a recession and in such a situation, inflation may become likely to grow again. In such a situation, it has to be seen whether any change is made in the repo rate, reverse repo rate and CRR in RBI’s MPC meeting.
