Repo Rate: It remained unchanged in the last two bi-monthly policy reviews in April and June. The meeting of the six-member Monetary Policy Committee (MPC) headed by the RBI governor will be held on August 8-10.
Reserve Bank of India: If you are also planning to take home loan, car loan or any type of loan from the bank, then this news can make you happy. For the third time in a row, no change in the interest rate is expected from the RBI in the upcoming bi-monthly policy review.
Experts have expressed the hope that the repo rate will remain at the old level. Experts said that despite the increase in the main rates of the US Federal Reserve and the European Central Bank, the domestic inflation remains within the prescribed range of RBI.
Repo rate remains at 6.5 percent
RBI started increasing interest rates from May last year. However, since February this year, the repo rate has remained at 6.5 percent. It remained unchanged in the last two bi-monthly policy reviews in April and June. The meeting of the six-member Monetary Policy Committee (MPC) headed by the RBI governor will be held on August 8-10. Governor Shaktikanta Das will announce the policy decision on August 10.
Madan Sabnavis, Chief Economist of Bank of Baroda , who is running below 5 percent,
said, ‘We expect that RBI will maintain status quo on rates. The reason for this is that the inflation rate is currently running below 5 percent. But with inflation rising in the coming months, there is a risk of some increase in it.
Upasana Bhardwaj, Chief Economist, Kotak Mahindra Bank, said, “Since the liquidity position has become favorable after the announcement of withdrawal of Rs 2,000 note, we expect the RBI to stick to the current stance.”
Upasana Bhardwaj said that everyone’s eyes will be on the trend of domestic inflation. ICRA Chief Economist Aditi Nayar said the CPI or retail inflation is expected to go above 6 per cent in July 2023 due to the rise in vegetable prices. He said that in such a situation, with the status quo on the repo rate, a very sharp comment of the MPC can be seen.
