Monetary Policy: Major points to watch out from Reserve Bank
There is no possibility of relief in interest rates and EMI. The decision of RBI's Monetary Policy Committee, which will directly affect the common man, will take place today.
New Delhi: The Reserve Bank of India started a two-day meeting on Tuesday 1 December for its monetary policy review. The decisions made in this meeting will be announced today. It is believed that this time the central bank will not make any change in policy rates.
That is, there is no possibility of relief in interest rates and EMI. The decision of RBI's Monetary Policy Committee, which will directly affect the common man, will take place today.
No change in policy rates:
In such a situation, the Reserve Bank policy rates will not change. India's GDP fell by 7.5 percent in the second quarter after falling by 24 percent in the first quarter. This was better than RBI's estimate of 8.6 per cent decline.
After better than expected, RBI can modify the GDP forecast in this policy from -9.5% to -7 to -9%. Madan Sabnavis, chief economist at CARE Ratings, said inflation is still very high. In such a situation, the Reserve Bank has no option but to keep the policy rates unchanged.
M. Govinda Rao, Chief Economic Advisor, Brickwork Ratings, said that consumer price index (CPI) based inflation is now very high. In such a situation, no change in rates is expected from the MPC. Deepak Aggarwal, co-CEO of Moneybox Finance, said food and headline inflation remained high.
RBI Governor to announce MPC Policy:
Please tell that on Friday, RBI Governor Shaktikanta Das will announce the decisions of the meeting. Economists here do not expect further cuts in the repo rate from the RBI. It is currently at 4% since May 2000, the lowest repo rate since 2000. The rate was cut by 115 basis points, or 1.15 per cent, in March when the country was facing the crisis of Covid 19. The reverse repo rate is 3.35%.
The RBI has cut the repo rate by 1.15% during the corona. The reverse rape rate has been cut by 1.55 percent since March. On May 22, the reverse repo was reduced by 0.40 per cent to 3.35 per cent. There has been no change in rates since 22 May. The repo rate remains at 4 per cent and the reverse repo rate at 3.35 per cent.