If you have taken home loan, auto loan or any kind of loan then it will not be cheap right now. This is because the Reserve Bank of India (RBI) has not changed the interest rates. The Reserve Bank’s Monetary Policy Committee (MPC) has retained the repo rate at 4% and the reverse repo rate at 3.35%. Here, RBI Governor Shaktikanta Das has projected a growth of 10.5% in gross domestic product (GDP) for 2021-22.
The rate at which banks pay interest on taking loans from RBI is called repo rate. At the same time, the interest received by banks on keeping their savings with RBI is called reverse repo rate. The RBI decides on interest rates every two months. This work is done by the 6-member Monetary Policy Committee (MPC). This decision was taken in the MPC meeting held from 3 to 5 February after the budget was presented on 1 February.
Repo rate reached a 15-year low
. There was no change in repo and reverse repo rate even in the last 3 meetings of the MPC. Currently, the repo rate is 4%, which is at a 15-year low, while the reverse repo rate also remains at 3.35%. A total of 115 basis points have been cut in the repo rate since February last year.
Expert said – inflation can be relieved
ICICI Securities Senior Economist Angha Deodhar said that the decision of MPC was as expected. This may bring relief from inflation in the coming days. Overall, the decision of the MPC is good for growth and financial stability.
Interest rates may go up The
Reserve Bank is now focusing on inflation and growth. The government is also focusing on increasing growth. This will prevent the fall in interest rates and may increase later. The chairman of some banks believes that interest rates may go up after May-June. By then, the economic situation is expected to improve and demand will increase. By that time, the corona will also be largely under control.
Foreign Investors Relying on Domestic Economy
RBI Governor Shaktikanta Das said that foreign investors are trusting the Indian economy. As a result, FDI and FPI investment flows have steadily increased in recent months. At the same time, the retail inflation rate (CPI) for the fourth quarter of the current financial year is estimated to be 5.2%, as against the earlier estimate of 5.8%.