Mumbai. Due to the repo rate not decreasing for a long time, the borrowers are not getting any relief in EMI. Now once again on Friday at 10 am, Reserve Bank Governor Shaktikanta Das is going to announce the repo rate. If the repo rate is reduced, then those who take home loans, car loans etc. can get relief in EMI.
Actually, inflation has come down a bit now, but still the prices of all things are high. The inflation rate is estimated to be 5 percent in May. Still, there is little hope that any decision will be taken to reduce the repo rate in the meeting of the Monetary Policy Committee of the Reserve Bank. The meeting of the Monetary Policy Committee i.e. MPC of the Reserve Bank is going on from June 5. The war between Russia and Ukraine continues. At the same time, Israel is also taking action against Hamas. China also keeps increasing tensions on the issue of Taiwan every day. Due to this, supply problems are also arising. The Reserve Bank has not reduced the repo rate since February last year. From May 2022 to February 2023, the Reserve Bank had increased the repo rate 6 times continuously. The repo rate was increased from 4 percent to 6.5 percent.
Due to the increase in repo rate, the EMI rates on loans have also been increasing continuously. Reserve Bank has set the target of bringing the inflation rate to 4 percent for a long time. In the month of April, the inflation rate was 4.83 percent. SBI’s research paper says that the inflation rate may fall to 3 percent in July. Let us tell you that in this Lok Sabha election, the opposition parties had made inflation a big issue against the Modi government. Due to no change in repo rate, the prices of some things may fall, but due to high EMI of the loan, crores of people’s pockets are getting burdened.