RBI Cut Interest Rates: The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is starting today. In this three-day meeting, it will be decided whether the EMI of your loan will be reduced or not. Actually, in this first meeting of the new financial year, a decision will be taken on the reduction in the repo rate. On April 9 at 10 am, RBI Governor Sanjay Malhotra will announce the decisions taken in this meeting.
In the last meeting held under the leadership of RBI Governor Sanjay Malhotra. The repo rate was reduced by 0.25% to 6.25%. This reduction was done after a long wait of about five years. Earlier, the RBI increased the repo rate several times in the name of controlling inflation, due to which loans became expensive, and the burden of EMI also increased on the people. At present, there is a softening in inflation, so it is believed that this time also some relief news in the repo rate may come from the RBI.
RBI holds this meeting every two months to review the monetary policy. The Monetary Policy Committee (MPC) has a total of 6 members, out of which 3 are from the RBI, while the rest are appointed by the Center. In this meeting, which lasts for three days, many issues, including the repo rate, are discussed. Information about the decisions of the meeting is shared on the morning of the third day itself. The RBI Governor himself tells us on which issues consensus has been reached in the MPC. The next meeting of the RBI MPC will be held on 4-6 June.
The repo rate is the rate at which the RBI gives loans to banks. When the repo rate increases, the loan becomes expensive for the banks. And they also make the loan for the customers expensive. On the contrary, when the repo rate is cut, the way for the loan to become cheaper opens up, and the possibility of reducing your EMI burden increases. That is why everyone keeps an eye on the meeting of the RBI MPC.
RBI has been given the responsibility by the Center. To maintain retail inflation at four percent with a variation of two percent. In 2022-23, the RBI had to face many problems on the issue of inflation. This was the first time in history that the RBI had to explain the central government. For not being able to control inflation. Under the Reserve Bank Act, if the target set for inflation is not achieved for three consecutive quarters, then the RBI has to give an explanation to the government. It has to explain why inflation has not come down and what steps have been taken by it.
Also Read: RBI To Cut Interest Rates Three Times in 2025?
Share
Indian Stock Market Crashes, ₹20 Lakh Crore Lost in 10-Seconds
Tahira Kashyap Cancer Update: All About Diagnosis
