The results of the MPC meeting of the Reserve Bank of India (RBI MPC Meeting Results) have arrived. Central Bank Governor Shaktikanta Das, while announcing the results of the first Monetary Policy Committee meeting held after the Budget (Budget 2024) at 10 am, said that this time also there will be no change in the policy rates. has not been done. That means your loan EMI will neither increase nor decrease. For the eighth consecutive time, the Reserve Bank has decided to keep the policy rate unchanged at 6.5 percent.
Shaktikanta Das said that four out of six members were in favor of not making any change in the repo rate. Along with making the announcement on Repo Rate, he also expressed concern about the global crisis.
Did inflation data prevent cuts?
Inflation rate in India is still within the range of 2-6% 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. It is noteworthy that the Reserve Bank last changed the Repo Rate on 8 February 2023.
Effect of Repo Rate on EMI
RBI’s MPC meeting is held every two months and six members including Reserve Bank Governor Shaktikanta Das discuss inflation and other issues and changes (Rule Changes). Let us tell you here that the repo rate has a direct connection with the customers taking bank loans. Due to its decrease, the EMI of the loan decreases and due to its increase, it increases. Actually, Repo Rate is the rate at which the central bank of a country lends money to commercial banks in case of any shortage of funds. Repo rate is used by monetary authorities to control inflation.