Kumar Bahukhandi
RBI MPC: The monetary policy committee of the Reserve Bank of India has decided to keep the repo rate at 6.5% once again in a three-day meeting. The RBI governor said that this decision has been taken by the MPC members with a majority of 4:2. Let us know about this in detail.
The Monetary Policy Committee of the Reserve Bank of India has decided to once again retain the repo rate at 6.5% in a three-day meeting. The RBI Governor said that this decision has been taken by the MPC members with a majority of 4:2. There has been no change in the repo since February 2023. According to the RBI Governor, the policy of the central bank affects the lives of the people. The first job of the RBI is to control inflation.
According to RBI Governor Shaktikanta Das, the Monetary Policy Committee (MPC) decided by a 4-2 majority to keep the interest rate unchanged at 6.5%, while the SDF rate remains at 6.25% and the MSF rate at 6.75%. The stance of the central bank remains neutral. The MPC unanimously agreed to maintain this neutral policy stance, indicating a cautious approach to the current economic conditions.
Economic growth rate forecast for the current financial year reduced from 7.2% to 6.6%
According to RBI Governor Shaktikanta Das, GDP growth rate in the July-September quarter was 5.4 percent lower than expected. Indicators indicating a slowdown in the economy in the second quarter have ended. According to Das, RBI has reduced the economic growth rate forecast for the current financial year from 7.2 percent to 6.6 percent. He said that the indicators indicating a slowdown in the economy in the second quarter are now in a state of ending.
After the MPC meeting, the RBI Governor said that due to continued pressure on food prices, inflation is likely to remain high in the third quarter. He said that Rabi production will provide relief. RBI has raised the retail inflation forecast for the financial year 2024-25 from 4.5 percent to 4.8 percent.
According to RBI Governor Das, the financial parameters of banks, NBFCs remain strong. The health of the financial sector is at its best level. The RBI governor said that the current account deficit will remain at a sustainable level in FY25. According to Das, the Indian rupee has been less volatile than its counterparts from emerging market economies. RBI imposes business restrictions on regulated entities only in cases where adequate corrective action is not visible.
How will the MPC’s decision affect your EMI?
The Monetary Policy Committee of the Reserve Bank of India has not made any change in the policy interest rates. The repo rate has been maintained at 6.5%. In this way, there is no possibility of change in your loan EMI from the banks. Therefore, neither you are going to get any relief on interest rates nor any burden is going to increase. At present, you will have to pay the same EMI as you were paying.
