Budget After you are going to get another good news. After about 5 years, the Reserve Bank of India (RBI) can cut the repo rate on Friday. Experts have predicted this. Chief economist Madan Sabnavis of Bank of Baroda said that this time there is a possibility of cutting policy rate. There are two reasons for this. First, RBI has already announced measures to increase cash. This has improved the market situation. It clears the way forward to cut policy rates. The Reserve Bank of India may cut the major policy rate by 0.25 percent in monetary policy review this week.
There will be help in bringing fast in the market
Experts estimate that if this happens, it will strengthen the steps taken to promote consumption in the budget. However, the fall in the rupee still remains a matter of concern. Experts believe that since retail inflation has been within the satisfactory scope (two to six percent) of the Reserve Bank in most time of the year, the central bank has a policy rate cut to promote impressed growth affected by sluggish consumption Can take steps. The Reserve Bank of India (RBI) has retained the policy rate repo at 6.5 percent since February 2023. Earlier, the last time policy rate was cut at the time of Kovid (May 2020) and after that it was gradually increased to 6.5 percent.
New governor Sanjay Malhotra will preside
The newly appointed Governor of the Reserve Bank Sanjay Malhotra will preside over the meeting of the Monetary Policy Committee (MPC) starting on Wednesday. The decision of the six -member committee will be announced on Friday 7 February. Sabanvis said that encouragement has been given through the Union Budget and it seems appropriate to reduce the repo rate to support it. The Reserve Bank has announced measures to pour cash worth Rs 1.5 lakh crore to banks on 27 January. He said, we can expect some changes especially in the forecast of economic growth. The reason for this was estimated by the National Statistics Office (NSO) 6.4 percent for the current year. It will be interesting to see if the RBI will estimate the growth rate for FY 2025-26. However, it is usually announced in the April Monetary Policy Review.
Rupee breaks can cause difficulty
Ekra’s chief economist Aditi Nair said that we do not think the fiscal incentives made in the Union Budget will have a significant impact on inflation. Hence, we feel that the balance is in favor of rate cut in the monetary policy review of February 2025. Nair said, however, if the global factors cause more weakness in the exchange rate of the rupee against the dollar during this week, the policy rate cut may be postponed by April 2025. The rupee fell 55 paise to 87.17 (temporary) per dollar on Monday against the US currency.
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