RBI Monetary Policy Meeting: Will EMI and loan rates increase? Know complete information before MPC meeting…

RBI Monetary Policy Meeting: The meeting of the Monetary Policy Committee of the Reserve Bank of India (RBI) will be held on 7-9 October. The decision on interest rate will be taken in this meeting to be chaired by Governor Shaktikanta Das.

The last meeting was held in August, in which the committee did not make any change in the rates for the 9th consecutive time. No change in interest rates is expected in the meeting to be held in October.

RBI Governor Shaktikanta Das will give information about the decisions of the meeting on October 9. This meeting takes place every two months. RBI last increased the rates by 0.25% to 6.5% in February 2023.

US Federal Reserve cuts interest rates by 0.5%

Earlier on September 18, the US Federal Reserve had cut interest rates by 0.5%. After this reduction made after four years, the interest rates were between 4.75% to 5.25%. America is the largest economy in the world, so every major decision of its central bank affects the economies around the world.

The Reserve Bank has increased interest rates by 1.10% 5 times since 2020.

The Reserve Bank of India (RBI) cut interest rates by 0.40% twice (27 March 2020 to 9 October 2020) during Corona. After this, in the next 10 meetings, the central bank increased interest rates 5 times, made no change four times and cut it by 0.50% once in August 2022. Before Covid, the repo rate on 6 February 2020 was 5.15%.

There may be a reduction of 0.50% in India by March 2025

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that there could be a reduction of 0.50% in India by March 2025. RBI has not made any change in interest rates from 8 February 2023. At present the repo rate is 6.50%.

Vijay Bhardiya, Founder, Valfort Financial Services Ltd, said the rate cut is a bold step that may encourage other global central banks, including the Reserve Bank of India (RBI), to adopt an accommodative monetary stance.