RBI MPC Meeting: RBI Monetary Policy Committee meeting starts from today, Shaktikanta Das will clear the stance regarding interest rates on 6th October

RBI MPC Meeting:The three-day meeting of the Monetary Policy Committee of the Reserve Bank of India, the regulator of the banking sector, to determine the interest rates has started from Wednesday, October 4 under the chairmanship of RBI Governor Shaktikanta Das. On October 6, RBI will announce the results of the MPC meeting in which it is believed that RBI will not make any change in the repo rate. 

The market is hopeful that RBI may take a decision not to make any change in the repo rate in the fourth consecutive Monetary Policy Committee meeting. In fact, the retail inflation rate has decreased to 6.83 percent in August 2023 as compared to 7.44 percent in July 2023. Before the retail inflation figures for the month of September will be declared on October 12, RBI will announce its decision on the repo rate. But the market is hopeful that the retail inflation rate may come down further in the month of September. But this monsoon season, abnormal rains and rise in crude oil prices remain a challenge for RBI. 

Earlier, there was a fear that due to less rains, there would be an impact on the Kharif crop and the Rabi crop, due to which an increase in food inflation could be seen. But heavy rains in the month of September have compensated for the deficiency. And now a better Rabi crop is being expected. In such a situation, if food inflation has come down along with core inflation, then it will bring relief from RBI. Retail inflation is still above the upper level of RBI’s tolerance band of 6 percent. RBI has set a target of bringing the inflation rate to 4 percent. Only after the inflation rate reaches this level can there be any hope of relief from expensive loans. However, at the moment this seems far-fetched. 

From May 2022 to February 2023, RBI has increased its policy rate repo rate by 2.50 percent. Due to which all types of loans including home loan have become expensive. In the last two years, people’s home loan EMI has become costlier by 20 percent.  

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