RBI’s decision, currently there is no change in your EMI – Reserve Bank of India (RBI) Governor Shaktikanta Das has not changed the repo rate. It has been retained at 4 per cent. With this, the hope of reducing the EMI of other loans including home has ended. The reverse repo rate has been kept at 3.35 per cent.
No change in repo rate
RBI Governor Shaktikanta Das told about the monetary policy of RBI at 10 am on Friday. He said that after the three-day meeting of the Monetary Policy Committee, it has been decided to keep the repo rate and reverse repo rate unchanged. He also said that the central bank will keep its monetary policy stance accommodative.
RBI committee meeting lasted for three days
The meeting of the Monetary Policy Committee of the RBI began on June 2. The committee decides about the repo rate and reverse repo rate. Most experts believed that this time in monetary policy, the central bank will not change the repo rate. It will be retained at 4 per cent, while the reverse repo rate will remain at 3.35 per cent.
What is Repo Rate?
The loan becomes cheaper when RBI reduces the repo rate. On the contrary, the loan becomes expensive when the repo rate increases. RBI reviews the repo rate every two months. Repo rate is the rate at which banks borrow from RBI. Generally, the loan rate of banks depends on the repo rate. The MPC members decide the change in the repo rate. Reverse repo rate is the rate at which banks get interest on their money deposited with RBI.
Fall in inflation forecast
RBI also tells about the state of the economy in its monetary policy. He also presents his own estimate of inflation. This time the central bank has made a slight reduction in its estimate of inflation.