The Reserve Bank of India (RBI) has not made any change in the repo rate in the second monetary policy review meeting of the new financial year, giving relief to the common people. The central bank has decided to keep the repo rate unchanged at 5.25 percent. After this decision, there is no possibility of increase in EMI of home loan, auto loan and other loans.
Sanjay Malhotra gave this information while announcing the decisions of the Monetary Policy Committee (MPC). However, RBI has also expressed concern about inflation in the coming times and has increased the inflation forecast for the financial year 2027.
Inflation estimate increased from 4.6% to 5.1%
RBI has revised its estimate on the inflation front, increasing it from 4.6 percent to 5.1 percent. The central bank believes that increasing tensions in global conditions and fluctuations in the energy market may impact the Indian economy in the coming months. According to experts, if the prices of crude oil and other energy sources continue to rise, it may have a direct impact on transportation, production costs and prices of consumer goods.
EMI will not be affected
The biggest benefit of no change in the repo rate will be given to those people who have taken a loan from the bank or are planning to take a new loan. There will be no immediate change in the cost of borrowing for banks due to the repo rate remaining stable, due to which the current interest rates can also remain stable. This means that at present there is no possibility of increase in EMI of home loan, personal loan and vehicle loan.
Challenge may increase due to global tension
RBI Governor Sanjay Malhotra said that at present retail inflation remains within the target range of the central bank, but the global situation is being continuously monitored. He said that increasing geopolitical tensions at the international level and possible increase in fuel and energy prices may affect inflation in future. This is likely to put additional burden on the pockets of common consumers.
Focus on balance between growth and inflation
This decision of RBI has come at a time when striking a balance between boosting the economy and controlling inflation remains a big challenge. The central bank is currently working on a strategy to support economic activities by maintaining stability in interest rates. Economists believe that the situation in global markets, crude oil prices and domestic demand may influence the next policies of RBI in the coming months. At present, the decision to keep the repo rate stable has brought relief to common consumers and the business world.
