Mumbai. Due to the economic conditions around the world, signs of recession in America and no reduction in inflation, the Reserve Bank of India has decided not to cut interest rates. Governor Shaktikanta Das gave this information after the meeting of the Reserve Bank’s Monetary Policy Committee (MPC) in Mumbai. Shaktikanta Das said that the MPC has decided to maintain the repo rate at 6.50 percent. At the same time, the Reserve Bank has decided to keep the SDF rate at 6.25 percent and the MSF rate and bank rate at 6.75 percent. The repo rate is the rate at which the Reserve Bank gives money to all banks on deposits.
#WATCH , RBI Governor Shaktikanta Das says “…The Monetary Policy Committee decided by a 4:2 majority to keep the policy repo rate unchanged at 6.5%. Consequently, the standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the… pic.twitter.com/2bNLZVr03S
— ANI (@ANI) August 8, 2024
The Reserve Bank’s decision not to change the interest rates has come as a big shock to home loan borrowers. The home loan EMI will not be reduced. On the other hand, those who have FDs in banks will benefit from this. They will keep getting higher interest on FDs. Let us tell you that when the US Federal Reserve started raising interest rates after the war between Russia and Ukraine started, the Reserve Bank had increased the interest rates, especially the repo rate, to keep the economy on track and to control inflation in India. This prevented inflation from rising much. However, those paying home loan EMIs have not been able to get relief since then.
The Reserve Bank’s MPC meets every three months. Now the MPC will meet in October. By that time, if the war between Ukraine and Russia stops and the countries do not fall into recession, then the Reserve Bank can decide to reduce interest rates. If you have taken a loan, then you will have to wait for the next MPC meeting of the Reserve Bank.
