RBI MPC Meeting 2024: Reserve Bank of India has not changed the repo rate for a long time. This time too, in the meeting of the Monetary Policy Committee, it has been decided to keep the repo rate stable at 6.5 percent. RBI has not cut the repo rate for a long time.
Right now people’s home loan EMI will not be reduced. People will have to wait for cheap loans. The Reserve Bank of India has once again decided to keep the repo rate stable. The Monetary Policy Committee has decided to keep the repo rate stable at 6.50 percent. The meeting of the Monetary Policy Committee headed by Reserve Bank Governor Shaktikanta Das started from April 3.
Today i.e. on April 5, RBI Governor Shaktikanta Das has announced the results of the Monetary Review Meeting (RBI MPC Meeting 2024). The central bank has once again kept the repo rate unchanged and has not made any changes in it. RBI has not cut the repo rate for a long time. Many experts were already expecting that the panel will not make any changes in the repo rate this time too. Earlier, in the last meeting of FY 24, the MPC had not made any change in the repo rate for the sixth consecutive time. It was decided to keep it stable at 6.50 percent.
Rates have been stable for a year
RBI has kept the repo rate constant at 6.50 percent for almost a year. RBI had last increased the repo rate by 0.25 percent from 6.25 percent to 6.50 percent in February 2023 last year. At the same time, the retail inflation rate in December 2023 was at the level of 5.69 percent. In such a situation, this time also the possibility of change in repo rate was less. Real estate giants had also expressed hope that keeping in mind the developers and home buyers, RBI will keep the repo rate stable.
What is repo rate?
Repo rate is the rate at which the Reserve Bank of India gives loans to banks. The central bank introduces monetary policy six times in a financial year. In this he keeps making changes according to his needs. The Central Bank takes decisions keeping many things in mind. The central bank tries to keep inflation under control through repo rate. A sudden increase in inflation poses a threat to the economy. In such a situation, controlling inflation is necessary for good growth of the economy. The increase or decrease in repo rate has a direct impact on the interest rates of banks’ loans. When RBI increases the repo rate, banks increase the interest rates on all types of loans like home, personal, auto etc. Similarly, when the repo rate decreases, banks reduce the interest rates on loans.
