In the last one year, all types of loans have become increasingly expensive in the country. Whether it is Home Loan or Car Loan, Personal Loan or any other EMI… Everyone has to pay more money now. For this reason people have been expecting relief on this front for a long time. Now this wait is going to end, because the important meeting of the Reserve Bank is going to start from Monday to take a decision in this regard.
year-on-year growth
To control Inflation which has reached a record level around the world, Central Banks have resorted to increasing the interest rates. India was also no exception in this matter and the Reserve Bank rapidly increased the interest rates (RBI Repo Rate Hike). In May last year, the Reserve Bank started raising interest rates by holding an emergency meeting of the Monetary Policy Committee. After that, the repo rate has been increased by 2.50 percent in one year.
Now the policy rate is
Due to the continuous increase made since May 2022 to curb inflation, the policy rate repo was increased by 2.5 percent to reach 6.5 percent in February 2023. After that, the meeting of the Monetary Policy Committee of the Reserve Bank was held in April 2023, which was the first meeting of the MPC during the current financial year. In that meeting, the Reserve Bank decided to keep the repo rate unchanged. In this way, the repo rate is now 6.5 percent.
Repo rate expected to remain stable
According to a PTI report, the Reserve Bank of India, ie RBI, may keep the policy rate repo unchanged at 6.5 per cent on June 8 due to the fall in retail inflation during the month of April and the expectation of further relief. Experts believe that if the Reserve Bank keeps the rates stable, it will indicate that the steps it has taken now to control inflation have proved effective.
Results will be revealed on June 8
The meeting of the six-member Monetary Policy Committee, or MPC, headed by Reserve Bank Governor Shaktikanta Das, is starting from Tuesday, June 6. This meeting will continue till June 8, Thursday. After the meeting, RBI Governor Shaktikanta Das will inform about the decisions on Thursday. This will be the second and 43rd meeting of the Monetary Policy Committee of RBI during the current financial year.
Retail inflation is so much now
This meeting of the MPC is taking place at a time when the Consumer Price Index ie CPI based retail inflation has come down to an 18-month low of 4.7 per cent in April. The RBI governor had recently indicated that in May this figure could go down from April as well. The retail inflation data for the month of May will be revealed on May 12 after the meeting is over. In such a situation, the possibility of increasing the interest rates is reduced.
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