In recent times, the inflation is touching high point. With the skyrocketing price of tomatoes, the prices of all food items have increased rapidly. In such a situation, the concern of increasing the repo rate has increased once again. That is, the burden of EMI of all loans, including home and car loans, is expected to increase again. However, , in the meantime, there has been news of relief. Experts say that the Reserve Bank of India (RBI) may maintain status quo on the key interest rate in its upcoming monetary policy review amid concerns on the inflation front. Experts believe that the cost of borrowing will remain stable to maintain the pace of economic growth.
Monetary policy to be announced on August 10
The six-member Monetary Policy Committee (MPC) headed by the RBI Governor will meet on August 8-10. Governor Shaktikanta Das will announce the policy decision on August 10. The RBI started raising interest rates in May last year, although the repo rate has remained at 6.5 per cent since February. After this, there was no change in the repo rate in two bi-monthly policy reviews in April and June.
There will be no change in interest rate
Punjab and Sind Bank Managing Director Swarup Kumar Saha said the RBI takes into account many things, including global trends. Therefore, the recent interest rate hikes by several central banks such as the US Federal Reserve will also be taken into account. “, ”Looking at the overall conditions, my guess is that the RBI will keep the repo rate unchanged. If the global situation remains stable, the interest rate is likely to remain the status quo for the next 2-3 quarters. ”
No change in repo rate likely
LIC Housing Finance Managing Director Tribhuvan Adhikari also said the central bank will maintain status quo in interest rates in the upcoming monetary policy review. He said that interest rates are likely to remain stable in the near term. The government has tasked the central bank to ensure that retail inflation remains at 4 per cent, with a deviation of up or down to 2 per cent. Yes Bank Chief Economist Indranil Pan said the repo rate is unlikely to change despite inflation in prices of vegetables, including tomatoes.
Retail inflation rises again
India’s retail inflation based on consumer price index (CPI) rose to a three-month high of 4.81 per cent in June, though it remained below the RBI’s tolerance level of 6 per cent.
