In today’s time, many people take loans to meet their needs, it becomes very difficult for some people to pay the loan EMI, increasing or decreasing the loan EMI depends on the Repo rate and RBI often changes it.
remains If you have taken any loan then know that recently RBI has given a big decision regarding Repo rate and it is very important for you to know this.
Reserve Bank of India Governor Shaktikanta Das released the monetary policy review. This time also there was no change in the main policy rate repo rate and the repo rate has been maintained at 6.5 percent. Loan taking customers will benefit from the repo rate remaining at its old level. The interest rate on home loan, auto loan or personal loan will remain the same as before.
This is the sixth consecutive time when no change has been made in the repo rate (Reserve Bank of India). Das said that during the MPC meeting, it was unanimously decided not to make any change in the repo rate. The central bank last increased the repo rate to 6.5 percent in February 2023.
Growth surpassing analysts’ estimates
Announcing the monetary policy review, Central Bank Governor Shaktikanta Das said that the country’s economy is showing strength amid uncertainty at the global level. On one hand economic growth is increasing, on the other hand inflation has decreased. The repo rate has been maintained to control inflation and accelerate economic growth. He said, the pace of growth is accelerating and it is surpassing the estimates of most analysts.
Global growth rate expected to remain stable
Apart from this, RBI (reseve bank of India) has maintained the MSF (Marginal Standing Facility Rate) and bank rate at 6.75 percent. RBI Governor Shaktikanta Das said that the global growth rate is expected to remain stable in 2024. He said that MPC is committed to bringing the inflation rate to four percent. Continuous work is being done on this. Das expressed hope that the pace of industrial activity will continue in 2024-25 also.
Let us tell you that last year in July 2023, the inflation rate had increased to a record level of 7.44 percent. After this, a decline was seen and it came down to 5.69 percent in December 2023. The Reserve Bank has got the target of keeping the inflation rate within the range of 4-6 percent.
What is repo rate?
The rate at which loans are given to banks by RBI (Reserve Bank of India) is called repo rate. Increase in repo rate means that banks will get loans from RBI at expensive rates. This will increase the interest rates on home loan, car loan and personal loan etc., which will have a direct impact on your EMI.