RBI's important announcement.! No change in repo rate..!?
In the first monetary policy announcement of the new Governor, Sanjay Malhotra, it was stated that the repo rate will continue at 5.50%. The RBI has said that this decision has been taken after examining the inflation and economic situation. The monetary policy decisions released by the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india on august 6 had created great expectations among the people of the country. Sanjay Malhotra, who took charge as the new Governor, released the results of his first monetary policy meeting. As many expected, it has been announced that the repo rate will remain unchanged at the current rate of 5.50%. The RBI said that the decision was taken after examining the economic situation and inflation control.
Previous interest rate changes:
Previous interest rate changes:
February 2025: 25 basis points cut, 6.50% → 6.25%
April 2025: Another 25 points cut, 6.25% → 6.00%
June 2025: A surprising 50 points cut, 6.00% → 5.50%
This brings the total reduction this year to 100 points. This has benefited the public by providing home loans, auto loans, and personal loans at lower interest rates.
The RBI has taken the decision to stabilize the interest rate in anticipation of the steady decline in the inflation rate and the gradual recovery of the country's economy. Economists say, “It would be a safe bet for now to keep the repo rate unchanged. If interest rates continue to be cut, inflation is likely to pick up again.”
Will bank interest rates fall? With this repo rate stability, there is little chance of an immediate reduction in interest rates on home and auto loans. However, experts believe that interest rates will be cut further if inflation levels decline significantly in future monetary policies. This situation will help banks plan their finances and borrowers act with expectations. The first monetary policy decision of the new governor, Sanjay Malhotra, confirms that priority is given to sustainable growth.
April 2025: Another 25 points cut, 6.25% → 6.00%
June 2025: A surprising 50 points cut, 6.00% → 5.50%
This brings the total reduction this year to 100 points. This has benefited the public by providing home loans, auto loans, and personal loans at lower interest rates.
The RBI has taken the decision to stabilize the interest rate in anticipation of the steady decline in the inflation rate and the gradual recovery of the country's economy. Economists say, “It would be a safe bet for now to keep the repo rate unchanged. If interest rates continue to be cut, inflation is likely to pick up again.”
Will bank interest rates fall? With this repo rate stability, there is little chance of an immediate reduction in interest rates on home and auto loans. However, experts believe that interest rates will be cut further if inflation levels decline significantly in future monetary policies. This situation will help banks plan their finances and borrowers act with expectations. The first monetary policy decision of the new governor, Sanjay Malhotra, confirms that priority is given to sustainable growth.