Jaipur : Reserve Bank Governor Shaktikanta Das said that in the monetary policy meeting held on 4, 5 and 6 December, the MPC has decided by a 4:2 vote not to make any change in the policy rates. Das said that it is the job of RBI to keep inflation under control. At the same time, it is important to pay attention to GDP growth also.
What is repo rate?
Repo rate is the rate at which the Reserve Bank of India (RBI) gives loans to banks. When RBI cuts the repo rate to increase cash flow in the market, it has a direct impact on the cost of borrowing. This means that borrowing can be cheaper, which is especially beneficial for people planning to take a home loan or other loans. With the repo rate falling, banks can reduce the interest rates on their repo-linked loans, which Your EMI reduces. Apart from this, due to banks getting loans at lower rates from RBI, they have more funds, due to which they can also decide to increase deposit rates.
Repo rate remains at 6.5%
After the meeting of the Monetary Policy Committee of the Reserve Bank of India held from 4 to 6 December, the Governor of the central bank RBI has given information about the decisions taken. The central bank has not made any change in the repo rate for the 11th consecutive time. The predictions that were being made earlier proved to be true. In the Bloomberg poll, 21 out of 25 economists believed that there would be no change in the repo rate. Let us tell you that the repo rate remains at 6.5% for the last 11 policies.
Hope for economic improvement – Das
Shaktikanta Das said that now there is hope of improvement in industrial activities. There is also hope of improvement in cement and metal after the end of monsoon.
