Jaipur : Reserve Bank has once again decided not to make any change in its repo rate. This is the tenth consecutive time that the Central Bank of India has not made any change in the repo rate in its monetary policy meeting. The Reserve Bank had kept the repo rate at 6.5 percent in February last year. Since then, nine meetings of the Monetary Policy Committee of the bank have been held. But there was no change in the rate. Repo rate is the rate at which all commercial banks borrow from the central bank of the country. It is a very important instrument through which the central bank controls the country’s economy and thereby maintains financial stability in the country.
Importance of repo rate for common people
Due to increase in repo rate, commercial banks also increase the bank rates and this affects the common customers. With the increase in repo rate, it becomes expensive for the customers to take loan and their EMI or loan repayment installment increases. Similarly, reduction in repo rate can reduce the EMI and provide relief to the customers. Its importance from the economic point of view is that if the installment of the customers is reduced then they will have more money to spend. This can boost the economy. But inflation also increases due to excess money in the hands of customers. Therefore, to control inflation, central banks decide to increase the repo rate from time to time.
Governor Shaktikanta Das gave information
A decision was taken in the meeting of the Monetary Policy Committee of the Reserve Bank of India to keep the repo rate of the Reserve Bank of India stable at 6.5 percent. This meeting was held from 7-9 October and the decisions taken in it were informed by Reserve Bank Governor Shaktikanta Das. Shaktikanta Das said, “The Monetary Policy Committee met with three new external members, and considering the macroeconomic and financial conditions and the future, five out of six members of the MPC decided to keep the policy repo rate at 6.5%.” The Reserve Bank had earlier held a meeting of its six-member Monetary Policy Committee in August and had decided to keep the repo rate unchanged for the ninth consecutive time.
