The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to be held every other month started on Tuesday. Reserve Bank Governor Shaktikant Das will announce the results of this three-day meeting on Thursday, June 8. The Reserve Bank had kept the interest rates constant in the last meeting. In such a situation, the people paying the home loan EMI have high hopes regarding this meeting. People are hopeful that this time the Reserve Bank can cut interest rates after a full year. But if experts are to be believed, the Reserve Bank can keep the interest rates stable in this MPC meeting.
Last year, amidst the rising prices of crude oil, the Reserve Bank suddenly started changing the repo rate after a break of about 2 years. Since then, in the last year, loans in the country are continuously getting costlier. Within a year, the repo rate has increased by 2.5 percent. Whose effect has been on home and car loans. Due to costlier loans, the EMI burden is also increasing. Till last year, the home loan and car loans available around 7 percent reached double digits. At the same time, personal loan EMI is continuously increasing. However, the common people have also benefited in the form of rising rates of fixed deposits.
The Monetary Policy Committee (MPC) of the Reserve Bank of India meets every other month. This month the three-day meeting has started today i.e. June 6. For the next three days, the members of the MPC will discuss the interest rates considering the current economic situation. On June 8, RBI will give its decision regarding the repo rate.
Economic experts believe that once again RBI can give relief to the people by not changing the repo rate. In the last MPC meeting held in April, the Reserve Bank kept the repo rate constant at 6.5%. Economic experts are hopeful that given the inflation data, a decision can be taken to keep the repo rate stable once again in the meeting of the Monetary Policy Committee headed by RBI Governor Shaktikanta Das. It is expected that till April last year, the repo rate was 4 percent. Which has reached 6.5 percent after the full year’s growth.
When the inflation rate in the country was on the rise last year, the Reserve Bank was continuously increasing the interest rates. But in the current financial year, the figures regarding inflation are giving relief. In April 2023, the consumer price index ie CPI-based retail inflation reached an 18-month low of 4.7 percent. At the same time, the rate of GDP growth in the country has also been more than 6 percent. Given this, it is believed that this time the Reserve Bank can provide relief to the people burdened with home loans.
