RBI: The Reserve Bank of India (RBI) on Thursday announced its decision to maintain the repo rate at 6.5 percent, following six increases since May of last year. The Monetary Policy Committee (MPC) resolved to maintain the repo rate at 6.5 percent with the willingness to act should the circumstance justify it, according to RBI Governor Shaktikanta Das.
Bank loans and EMIs are impacted by changes in the repo rate
The RBI has increased the repo rate six times since May of last year in an effort to rein in spiralling inflation. The RBI predicted that inflation would be 5.2% in the fiscal year 2023–2024 and 5.1% in the first quarter. The governor of the RBI claimed that the current fiscal year indicated a lowering of inflation. He declared that the fight against inflation would go on until a steady reduction was achieved. Bank loans and EMIs are impacted by changes in the repo rate, which is the rate at which the RBI lends money to banks.
Economy is predicted to develop at a rate of 7%
According to Shaktikanta Das, the global economy is going through new turmoil, and the RBI would continue to concentrate on unwinding its monetary policy accommodations. According to him, the May 2022 policy choices are still being implemented and the present policy rate is still accommodative. The banks and non-banking financial systems are still sound, and India’s economy is still robust, with an anticipated growth of 7% in the current fiscal year. The RBI also slightly increased its earlier estimate of 6.4% for the GDP growth forecast for FY24 to 6.5%. According to Shaktikanta Das, the economy is predicted to develop at a rate of 7% and economic activity is still robust.
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