RBI Policy Meeting: No Change in Repo Rate For the Fifth Time, More Focus on Reducing Inflation
Interest Rate on Loans: Following the three-day Monetary Policy Review Meeting (MPC Meeting), RBI Governor Shaktikanta Das stated that the committee has decided not to change the repo rate, which is currently 6.5 percent. As the repo rate has not changed, banks will not change the interest rate on their loans. As a result, the interest rates on loans for cars, homes, and other items will stay the same, and the interest rates on current loans won’t change.
GDP Estimated To Grow 7%
The repo rate is the interest rate at which the Reserve Bank lends to other banks, who then lend it to the public. As a result, whenever the repo rate changes, it has a direct impact on the loan's EMI. This means that if the repo rate rises, so will the loan's EMI. Governor Shaktikanta Das stated at the Reserve Bank of India's fifth monetary policy meeting for the fiscal year 2023-24 that the focus will be on keeping inflation below 4%. He also stated that the gross domestic product is expected to grow by 7% in fiscal year 2023-24. Shaktikanta Das estimates that real GDP growth will be 6.7 percent in the first quarter of 2024-25, 6.5 percent in the second quarter, and 6.4 percent in the third quarter.
