Amid the global crisis, the results of the MPC meeting of the Reserve Bank of India (RBI MPC Meeting Results) are going to come shortly from now and Central Bank Governor Shaktikanta Das will speak after the Budget (Budget 2024) at 10 am. Will announce the results of the first meeting being held. Only after their announcement will it become clear whether your home-auto loan EMI is going to increase or your burden will reduce. Yes, after some time the RBI Governor is going to announce the repo rate.
First MPC meeting after budget
This is the first MPC meeting of RBI after the presentation of the first budget of Modi 3.0, which started on August 6 and today is its last day. The eyes of the entire country are fixed on this meeting of the Reserve Bank, especially of the loan takers, in fact the Repo Rate directly affects the EMI of the loan. When the repo rate increases, all banks increase loan interest rates and when it decreases, they take steps to reduce the interest rate. In such a situation, its effect is visible on the EMI to be paid from your pocket. At present, the Repo Rate has been maintained at 6.5 percent for a long time.
Will the repo rate not change this time also?
RBI Governor Shaktikanta Das will announce the committee’s decisions around 10 am. As soon as the meeting started, experts started making predictions about the changes in repo rate. If reports are to be believed, looking at the current inflation rate data in the country, experts are expressing the hope that this time also the Central Bank can keep the repo rate unchanged, that is, there is little hope of seeing any change in the repo rate this time too.
This is what experts believe
According to economists at MK Global, the 6-member Monetary Policy Committee of the Reserve Bank of India (RBI) is unlikely to cut the repo rate. He said that the committee led by Central Bank Governor Shaktikanta Das may choose the path of waiting for a sustainable decline in food inflation. Along with this, economists believe that Open Market Operation (OMO) sales are going on, India’s growth is still strong and the current financial conditions are loose which seems to demand status quo today.
Retail inflation at four-month high
Inflation rate in India still remains above the range set by RBI. In June, retail inflation was at a four-month high of 5.08 percent. Unless the retail inflation rate comes down, there is little possibility of cutting the repo rate. It is noteworthy that the Reserve Bank of India last changed the repo rate in February 2023 and increased it to 6.5 percent. Since then, RBI has not made any changes in it for 7 consecutive times.