RBI monetary policy meeting, 2024: The decision on the monetary policy meeting of RBI has come. Governor Shaktikanta Das has not made any change in the repo rates this time too. The RBI meeting started on 3 April.
RBI Repo Rate: The decision on RBI’s monetary policy meeting (RBI MPC Meeting) has come. The central bank has not made any change in interest rates for the 7th consecutive time. Repo rates still remain at 6.5 percent. Governor Shaktikanta Das has given information about this. The 6-member committee of the Reserve Bank has not made any change in the repo rates with a majority of 5-1, that is, 5 have decided not to change the repo rate.
Let us tell you that the Central Bank last changed the interest rates in February 2023. At that time the repo rates were increased to 6.5 percent. RBI Governor Shaktikanta Das is giving information about the decisions of the meeting. This meeting started on 3 April.
CPI and GDP estimates
RBI Governor has said that the CPI estimate for FY25 has been maintained at 4.5 percent. Apart from this, GDP growth in FY25 is estimated to be 7 percent.
Why didn’t the change happen?
The policy rate has been kept unchanged with the aim of bringing down inflation to four percent and accelerating economic growth amid global uncertainty. This is the seventh consecutive time that the repo rate has not been changed.
Your EMI will not increase
Repo rates are the interest rates at which commercial banks take loans from the central bank to meet their needs. RBI uses it to control inflation. Keeping the repo rate at 6.5 percent means that there is less possibility of change in monthly installment (EMI) on all types of loans including home loan, auto loan.
Got the responsibility to reduce inflation
RBI has the responsibility of keeping retail inflation at four percent with a variation of two percent. The Reserve Bank had increased the repo rate to 6.5 percent in February 2023. Before that, the policy rate was increased by 2.50 percent for six consecutive times from May 2022.
GDP estimates
>> GDP growth declined from 7.2 percent to 7.1 percent in Q1FY25
>> GDP growth forecast in Q2FY25 increased from 6.8 percent to 6.9 percent
>> GDP growth estimate in Q3FY25 remains at 7 percent
>> GDP growth estimate in Q4FY25 remains at 6.9 to 7 percent
CPI estimates
>> CPI estimate reduced from 5 percent to 4.9 percent in Q1FY25
>> CPI estimate reduced from 4 percent to 3.8 percent in Q2FY25
>> CPI estimate for Q3FY25 remains at 4.6 percent
>> CPI estimate reduced from 4.7 percent to 4.5 percent in Q4FY25
What is the impact on the general public?
Increase or decrease in repo rates affects the loan interest rates of banks. Due to increase in repo rates by RBI, banks make all types of loans including home loan, auto loan and personal loan expensive. That is, it is a simple matter that the interest rates are increased… At the same time, if the Reserve Bank cuts the repo rates, then the loan interest rates also reduce.
