Reserve Bank of India (RBI) The three-day meeting of the Monetary Policy Committee of RBI has started from today. The August meeting is the third meeting after the start of the new financial year from April 1, the first meeting was held on 3-5 April and the second was held on 5-7 June. In the changed global situation, this time this monetary policy meeting of RBI is going to be very important. Let us tell you that since February 2023, RBI has not changed the repo rate. In such a situation, will a decision be taken to cut the repo rate this time. If there is a cut in the repo rate, then all loans including home loans, car loans will be cheaper. If the repo rate remains stable then there will be no change in interest rates. That is, there will be no relief from the burden of increased EMI. It is worth mentioning that on August 8, the Monetary Policy Committee of RBI will announce its decision.
What are your expectations?
According to most economists, the central bank is expected to keep the repo rate unchanged at 6.50 percent. This is because despite stable growth of 7-8 percent in Asia’s third largest economy, all is not well on the inflation front. These concerns have increased after inflation crossed the 5 percent mark in June 2024.
No impact on India’s growth
Experts said that amid continued inflationary pressure, the RBI may refrain from cutting rates in its Monetary Policy Committee (MPC) meeting, as even if the interest rate is raised to 6.5 per cent (repo rate), economic growth is good. ICRA Chief Economist Aditi Nair said that high growth in FY 2023-24, coupled with inflation of 4.9 per cent in the first quarter of the current financial year, is creating a stance in favor of maintaining the status quo. He said that there seems to be no scope for a change in stance or rate cut in the August 2024 meeting. He said that if food inflation becomes favorable in the absence of good monsoon and global or domestic shocks, then a change in stance is possible in October 2024. After this, interest rates may be cut by 0.25-0.25 per cent in December 2024 and February 2025.
Latest Business News
