Mumbai Finance Minister Nirmala Sitharaman announced in the budget that from April, 12 lakhs of earnings would not have to pay income tax. This rebate of income tax for the employed class will be up to 12.75 lakhs. Now the common man is expected to get a gift again on tomorrow i.e. Friday. This gift can be given to the common people, the RBI. RBI’s monetary committee i.e. MPC is meeting. If the decision is made in the MPC meeting, the RBI may reduce the repo rate. Lowering the repo rate will give a lot of relief to those who have taken loans.
In fact, it was decided to keep the repo rate at 6.50 per cent in the MPC meeting of RBI due to the high inflation rate. The RBI did not decrease the repo rate for 2 years. EMI on the loan has increased continuously due to the increase in repo rate. This has put a burden on the pockets of the borrowers. In the last two weeks, the rate of inflation has decreased slightly. In such a situation, it can be decided to reduce the repo rate in the MPC meeting of RBI. RBI Governor Sanjay Malhotra will give information about the repo rate and other rates at 10 am on Friday. By the way, if the repo rate is reduced, then the loan takers will get relief, but those who invest money in FD or other deposit schemes will also get a low interest rate.
Now let us tell you what is the repo rate. The repo rate is the interest rate on which banks lend money from RBI. Due to high repo rate, banks have less cash left. Because of this, they increase interest rates on loans. This has to pay more EMIs for loans. On 7 December 2022, the Reserve Bank made the repo rate 6.25 percent. Earlier on 30 September 2022, the repo rate was 5.90 percent. Whereas, on 22 May 2020, the repo rate was 4 percent. The RBI raised the repo rate to 6.50 per cent on 8 February 2023. Since then, RBI has not done any decline due to continuous inflation being more than 6 percent.
