Home loan, car loan for a long time There is good news for those who are waiting for the reduction of EMI of their other loans. The way has been cleared for their EMI to be reduced in the coming days. Actually, retail inflation in the US came down to 2.9 percent in July, the lowest level in more than three years. After this, the Federal Reserve may consider cutting the policy interest rate in September. In India too, the retail inflation rate has come down to 3.54 percent in July, which is the lowest level in 59 months. It has become clear that the Reserve Bank of India (RBI) can decide to cut interest rates in the monetary policy meeting to be held in September. This will reduce the EMI of the loan.
The Fed’s decision will have an impact in India too
Retail inflation in the US fell to a more than three-year low of 2.9 percent in July. After this, the Federal Reserve may consider cutting the policy interest rate in September. Releasing retail inflation data on Wednesday, the Labor Department said that consumer prices rose by just 0.2 percent in July as compared to June. At the same time, prices rose by 2.9 percent in July compared to a year ago, while the inflation rate was three percent in June. This is the lowest increase in retail inflation on an annual basis in the US economy since March 2021. This softening in inflation has increased expectations of a cut in the policy rate. The Federal Reserve may take a decision on interest rates in September.
The main issue in the US election
Inflation has become a major issue in the US economy as well as the presidential election. Former President Donald Trump has blamed the Biden administration’s energy policies for the price rise. Vice President Kamala Harris said she would soon present new proposals to ‘reduce costs and strengthen the economy overall’. The government said almost all of the increase in monthly inflation data reflects higher rental prices and other housing costs, a trend that is declining according to real-time data.
Interest rates will also decrease in India
The fall in inflation rate is a relief news for the central government. The government has given the Reserve Bank the target of keeping the average retail inflation rate around four percent in the medium term. It remained above this for a long time. Now that inflation has come under control, the hope of a cut in the repo rate has increased. This will reduce the interest rate on all types of loans. Crores of consumers taking loans will benefit from this.
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