New Delhi:
RBI Monetary Policy Meeting: The results of the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) were announced. Reserve Bank of India Governor Shaktikanta Das has announced the decisions of the MPC meeting. RBI has not made any change in the repo rate for the 11th consecutive time.
This means that the EMI of your loan is not going to increase. However, in such a situation, those taking home loan and car loan will not get relief in EMI. Currently the repo rate is 6.50%, which is stable from February 2023. Market experts were already expecting that there would be no change in the repo rate this time too.
What is repo rate?
Let us tell you that repo rate is the rate at which commercial banks borrow money from RBI. RBI uses repo rate to control inflation. If inflation is increasing then RBI can increase the repo rate, due to which banks will also give loans to their customers at higher interest rates. With this, people will spend less and inflation will reduce. On the contrary, if the economy is sluggish then RBI can reduce the repo rate. With this, banks will get cheaper money and they will also give loans to customers at lower interest rates. This will make people spend more and the economy will get a boost.
CRR reduced from 4.5% to 4%
In order to increase liquidity in the economy, the central bank reduced the CRR (Cash Reserve Ratio) from 4.5 percent to four percent. According to the RBI Governor, a decision has been taken to reduce CRR by 50 basis points, after which the cash reserve ratio has been reduced to 4 percent. With this step, additional cash of Rs 1.16 lakh crore will be available in banks.
CRR means that banks have to deposit a certain portion of their total deposits with the RBI in the form of cash. The remaining money can be used by the bank for giving loan or for other investments.
RBI Governor said that our effort is to follow the flexible targeting framework of the RBI Act. Price stability is important for every sector of our economy. It affects the purchasing power of people, hence it is important for businesses also.
Standing deposit facility remains at 6.25%
As per the announcements of the Monetary Policy Committee, the committee has also kept the Standing Deposit Facility (SDF) at 6.25 percent. Bank rate and marginal standing facility have been kept constant at 6.75 percent. The Committee believes that the foundation of high growth can be kept strong only with sustainable price stability. Standing Deposit Facility (SDF) was introduced by the Reserve Bank of India (RBI) as a monetary policy instrument on April 8, 2022. Had gone.
The RBI Governor said that monetary policy has a wide-ranging impact, price stability is important for every sector of the society and we are working keeping in mind the economic growth. He said that important data indicate that the second half of the current financial year Economic growth will accelerate.
RBI reduced the growth rate estimate for the current financial year from 7.2% to 6.6%.
GDP growth rate in the July-September quarter was lower than expected at 5.4 percent. In view of the current situation, RBI reduced the economic growth rate estimate for the current financial year from 7.2 percent to 6.6 percent. Along with this, RBI has increased the estimate of retail inflation from 4.5 percent to 4.8 percent in the current financial year.
Governor Shaktikanta Das says that the indicators indicating slowdown in the economy in the second quarter are now in a state of ending. Inflation is likely to remain high in the third quarter due to continued pressure on food prices.
