New Delhi, 06-May-2023, Tuesday

Reserve Bank of India - RBI's bi-monthly Monetary Policy Committee (MPC) meeting has started today. In this three-day meeting, the results will be announced by Reserve Bank Governor Shaktikanta Das on June 8. The Reserve Bank had kept the interest rates steady in the previous meeting. In such a situation, people who are returning home loans and EMIs have a lot of hope. People are hopeful that the Reserve Bank may cut the interest rates this time after a year. However, if experts are to be believed, the Reserve Bank may keep interest rates steady in this MPC meeting.

Repo rate has been increased by 2.5 percent in the last one year

Last year amid rising crude oil prices, the Reserve Bank suddenly started changing the Repo Rate after a break of almost 2 years. Since then, loans in the country have become increasingly expensive. Repo rates have gone up by 2.5 per cent within a year, directly impacting home and car loans. EMI burden is also increasing due to costlier loans. Home loans and car loans, which were around 7 percent last year, have reached double digits. While EMI of personal loan is also increasing continuously. However, the increase in fixed deposit interest rates has also benefited the common man.

RBI meeting starts today

The Monetary Policy Committee (MPC) of the Reserve Bank of India meets every two months. A three-day meeting has started from today this month. In the current meeting, MCPS members will discuss interest rates keeping in view the current economic situation and RBI will announce its decision on repo rate on June 8.

Interest rates are expected to remain stable

Economic experts believe that the RBI can give relief to people by not changing the repo rate once again. In the last MPC meeting held in April, the bank kept the repo rate steady at 6.5 percent. Economic experts are hopeful that the meeting chaired by RBI Governor Shaktikanta Das may once again decide to keep the repo rate steady in view of the inflation figures. It is believed that the repo rate was 4 per cent till April last year, which has reached 6.5 per cent after a full-year growth.

Reserve Bank will focus on providing relief in inflation

Last year, when the rate of inflation was increasing in the country, the Reserve Bank was continuously increasing the interest rate. But inflation figures for the current financial year are giving relief. Retail inflation, based on the consumer price index or CPI, hit an 18-month low of 4.7 percent in April-2023. While the GDP growth rate in the country has also been more than 6 percent. Keeping these things in mind, it is believed that this time the Reserve Bank can provide relief to the people who are bearing the burden of home loans.