Reserve Bank of India (RBI) The Monetary Policy Committee (MPC) of India will decide on the repo rate today. The decision of the MPC headed by Reserve Bank Governor Shaktikanta Das will be announced on Friday i.e. today. It is expected that the central bank will once again keep the key policy rate repo unchanged and maintain its focus on controlling inflation. As concerns over economic growth rate subside, the focus is expected to remain on retail inflation. If this happens, then people expecting relief on EMIs of all loans including home, car loan will be disappointed because their EMI will not be reduced. By not cutting the repo rate, banks will not reduce interest rates.
No change in repo rate since six times
Let us tell you that RBI has not made any change in the repo rate in six monetary policy reviews. The repo rate was last increased to 6.5 percent in February 2023. The repo rate has remained stable since that time. The government has asked the RBI to ensure that retail inflation remains at four percent with a variation of two percent. The retail inflation rate in the month of February was 5.1 percent.
RBI’s eye on global economy
Experts said that in the MPC meeting, attention may be given to the stance of central banks of some major economies like America and Britain. These central banks are currently in a ‘watch and wait’ position regarding interest rate cuts. Switzerland has become the first major economy to cut interest rates, while Japan, the world’s third largest economy, recently ended its streak of negative interest rates. A research report by State Bank of India (SBI), the largest public sector lender, said the withdrawal of accommodative stance in monetary policy may continue. In this, the possibility of first rate cut in the third quarter of the current financial year has been expressed.
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