RBI: During the MPC meeting held on 6th April, the Reserve Bank had held its repo rate and now once again it can remain stable, but it will depend on these things.
Reserve Bank Of India: Reserve Bank of India can once again give relief to the people. During the meeting of the Monetary Policy Committee in June, the RBI can put the increase in the repo rate on hold by stopping it. Members of the panel that decides India’s repo rate say that the increase since last May is sufficient to deal with inflation. In such a situation, the central bank can keep its rates stable without making any changes.
However, to ensure that the repo rate does not increase under the bi-monthly review to be held in June, two main things have also been alerted. According to the Economic Times report, the panel has said that if farm-gate prices rise due to incomplete monsoon and crude oil rises, then the repo rate may be increased once again. That is, it can be said that monsoon and crude oil play an important role in keeping the repo rate stable.
Inflation expected to remain under control
The six-member MPC of the Reserve Bank of India (RBI) is of the view that the trajectory of inflation is uncertain given the possible negative impact of deficient monsoon. Nevertheless, it is expected that if the production of the next crop does not decrease or the price of food items does not increase, inflation will remain under control.
‘Lower the pressure of tender cost’
Governor Shaktikanta Das told the MPC meeting that the softening of global commodity prices from their peak a year ago is translating into lower input cost pressures for manufactured goods and services. “This is enough to control inflation.” Please note that RBI Governor Shaktikanta Das surprised everyone by not changing the repo rate during the MPC meeting on April 6. While big experts had expressed apprehension of an increase. However, some people still believe that this The rate may increase again.
2.5 percent increase
Since May last year, the 8th meeting of the RBI MPC has been held, in which the repo rate has been increased 6 times. There has been an increase of 2.5 percent in the repo rate since May. That is, at least 2.5 percent interest has increased in the interest of your loan. This increase has been done to control the inflation rate.
