RBI three-day Monetary Policy Review (MPC), which began on December 6, is coming to an end today. RBI Governor Shaktikanta Das will announce the decision made at the MPC today. According to a survey, the government is still facing difficulties as a result of growing prices. The RBI may once more set the policy repo rate at 6.5 percent in such a scenario. Should this occur, it will mark the sixth time in a row that the decision to leave the repo rate unchanged during the MPC has been made.
Fear of a November rise in retail inflation
According to a Reuters survey, forty-one economists believe that retail inflation would rise in November. In reality, the government’s anxiety about inflation has grown in the previous few days due to the growing prices of tomatoes and onions. This time, according to economists, the inflation rate might rise to 5.70 percent. At one point in October, it dropped to 4.87 percent. The current month of December also exhibits the effects of inflation.
The repo rate is not anticipated to change in any way.
In addition, nine financial experts have stated that they anticipate the RBI will not alter the repo rate at this time either. The policy rate had not changed by the Central Bank for four straight times before this. The repo rate was last raised by the RBI to 6.5 percent in February of this year. Commencing in May 2022, the Reserve Bank initiated the process of raising the repo rate. From May to February 2023, there was a 2.5 percent increase in the repo rate.
What is the repo rate?
The repo rate is the interest rate at which the RBI lends money to banks. Banks will pay higher interest rates for loans from the RBI if the repo rate rises. This will directly affect your EMI by raising the interest rates on personal, auto, and house loans, among other loans.
Read More: Car drivers be aware! pay challan within 90 days to avoid this punishment
|
|
  YouTube |
         Click Here |
| Â Facebook Page |
         Click Here |
| Â Instagram |
         Click Here |
| Â Telegram Channel |
         Click Here |
, which began on December 6, is coming to an end today. RBI Governor Shaktikanta Das){kind=link}