You will not get any relief in the EMI of home loans, the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has not made any change in the interest rates. But the Reserve Bank has maintained its position ‘Accomodative’. Understand what it means
New Delhi: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) has not made any changes in interest rates. The MPC has kept the repo rate at 4 percent. This means that banks will get loans from the Reserve Bank only at 4%, due to this, banks also will not make loans cheaper for the people. The reverse repo rate also remains at 3.35%.
Banks seek extension of loan recast window till March 31: Report
Interest rates do not change, EMI will not reduce
The MPC’s monetary policy is in accordance with the expectations of economists and analysts. All 6 members of the MPC voted not to change the interest rates. Reserve Bank of India (RBI) Governor Shaktikanta Das said during the review of the credit policy that the RBI has also retained its stand. This means that the Reserve Bank will not raise interest rates at least once more. Due to this news, the stock market has seen strong boom. Sensex has crossed 45,000 for the first time.
Reduced rates by 1.15% so far
Let us tell you that the Reserve Bank has cut the repo rate by 115 basis points i.e. 1.15% this year. With this reduction, the repo rate is at 4 percent after 2000, which is the lowest level.
Inflation will remain high
The Reserve Bank believes that inflation will continue to be high. Retail inflation is expected to be 6.8% in the third quarter. Retail inflation has remained above the Reserve Bank’s comfort level of 4 per cent for the past several months. The Reserve Bank said that CPI inflation has reached 7.6% by October, the retail inflation is expected to be 6.8% in the December quarter. The CPI inflation rate in the fourth quarter is 5.4 percent.
Signs of recovery in growth
There are strong signs of recovery in the second half of FY21. Recovery is taking place as expected in the economy. During the policy, the Reserve Bank said that it is necessary to create a balance between inflation and growth. The Reserve Bank has taken many major decisions for positive sentiment. The Reserve Bank will also take steps in the interests of market participants for liquidity. RBI has revised its GDP growth estimate, GDP growth is estimated to be -7.5% in FY21 which was earlier -9.5%.
