rbi repo rate
People in India have been waiting for a long time for the interest rates to reduce on all types of loans including personal loan, home loan and auto loan. This will happen when the Reserve Bank of India i.e. RBI starts reducing its main interest rate repo rate. Repo rate is the rate at which RBI lends to banks and financial institutions. When banks get cheap loans, they also offer cheap loans to their customers. The repo rate is decided in the meeting of the Monetary Policy Committee of RBI. This meeting takes place every 2 months. RBI MPC meeting has started from today Wednesday. On December 6, the RBI Governor will inform about the decision of this meeting.
Will interest rates decrease?
The central bank takes the decision on repo rate keeping in mind the inflation data and economic growth rate. The repo rate is expected to remain status quo due to retail inflation being above RBI’s satisfactory level. In such a situation, the wait of loan customers may increase further. RBI Governor Shaktikanta Das is presiding over the last MPC meeting of his current tenure. His tenure ends on December 10. The government has given the responsibility to RBI to keep retail inflation at four percent with a variation of two percent.
No change from February 2023
RBI has maintained the repo i.e. short-term interest rate at 6.5 percent from February 2023. Experts believe that there may be some relaxation in this only in 2025. A research report by SBI said, “We do not expect a rate cut in the current financial year.” The first rate cut and further change in stance are expected in April 2025. India’s GDP growth fell to a two-year low of 5.4 percent in the July-September quarter of the current financial year due to poor performance of the manufacturing and mining sectors. Went. GDP grew by 8.1 percent in the July-September quarter of the financial year 2023-24. Mandar Pitale, head of treasury, SBM Bank India, said, “Instead of considering a rate cut, the RBI should support growth by increasing liquidity by reducing CRR (cash reserve ratio) in a phased manner.
(With inputs from PTI/Language)
Latest Business News
