RBI MPC Update: No relief in EMI even after election results, Repo Rate remains at 6.5%
RBI MPC Update: No relief in EMI even after election results, Repo Rate remains at 6.5%RBI has increased the GDP growth rate forecast for 2024-25 from 7% to 7.2%. The retail inflation forecast for the current financial year 2024-25 has also been retained at 4.5%.RBI MPC Update: No relief in EMI even after election results, Repo Rate remains at 6.5%The repo rate has been maintained at 6.5% by the RBI for the eighth consecutive time. RBI has not made any change in the policy rate repo for the eighth consecutive time during the second bi-monthly monetary policy review of the current financial year on friday i.e. today. The policy rate has been maintained with the aim of bringing inflation to a sustainable level i.e. 4% and accelerating economic growth amid global uncertainty. RBI governor Shaktikanta Das on friday informed about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC) which started on Wednesday. He said that with this the MPC members have also decided to maintain their decision to withdraw the liberal stance to bring retail inflation in line with the target.Changes made by RBIRBI has increased the GDP growth rate forecast for 2024-25 from 7% to 7.2%. The retail inflation forecast for the current financial year 2024-25 has also been maintained at 4.5%. Retail inflation is estimated to be 4.9% in the first quarter, 3.8% in the second quarter, 4.6% in the third quarter and 4.5% in the fourth quarter. Repo rate is the interest rate at which commercial banks take loans from the central bank to meet their immediate needs. RBI uses it to control inflation. Keeping the repo rate at 6.5% means that there is little possibility of change in the monthly installment (EMI) on various loans including home and vehicle. RBI has been given the responsibility of keeping the retail inflation at 4% with a variation of 2%.