Mumbai The Monetary Policy Committee of the Reserve Bank (RBI) i.e. MPC is being held from today to 6 August. This meeting of MPC is eyeing the loan ie loan. MPC had earlier reduced the repo rate. Due to which EMI on loan was reduced. Now the borrowers are hopeful that the repo rate can be reduced further in the MPC meeting of RBI. If the RBI decides to reduce the repo rate in the MPC meeting, then the EMI of those taking loans will be less and they will get great relief.
RBI Governor Sanjay Malhotra will inform about the decision of the MPC meeting on August 6.
There is a possibility of reducing the repo rate from RBI. The reason for this is that in June, the CPI rate had come down to 2.1 percent in June. This is quite low since 2019. In 2026, the CPI has estimated the rate of an average of 3.1 percent on an average. At the same time, the rate of inflation is estimated to be 4.5 percent in 2027. The RBI and the central government have already decided that the rate of inflation has to be kept up to 4 percent. Its maximum rate of 6 percent has been valid. RBI tries to control inflation by increasing the repo rate due to higher rates.
Inflation had increased continuously since the deepening of Kovid and India-China border disputes. Because of this, the RBI had maintained the repo rate for 6.5 percent for a long time. This increased the EMI of the loan as well as the interest rate on fixed deposits (FD) was also increased by banks. Last time the RBI reduced the repo rate, then the interest rates of FD also decreased. If then the repo rate decreases, then the loans will get relief in EMI, but those who get FD in banks will get another shock. In such a situation, even if the RBI decides to reduce the repo rate, it is unlikely to be cut a lot.
