The Reserve Bank of India will also announce its bi-monthly monetary policy on February 7, which will come right after the budget to be presented on February 1. Will the RBI do anything to reduce your EMI then?
In fact, it was already anticipated that the US Federal Reserve would stop cutting interest rates. And after Donald Trump was elected President, this possibility also turned into a certainty. Earlier, the Federal Reserve had cut interest rates twice in the November and December meetings and reduced the interest rates by a full 1 percent. Currently, the interest rate of the Federal Reserve will remain between 4.25 to 4.50 percent.
RBI’s monetary policy 2025
After the Federal Reserve did not make any change in the interest rates, two major financial events are to take place in India. First, on February 1, 2025, the government will present the budget for the financial year 2025-26.
Then after that, the Reserve Bank of India’s first monetary policy of the calendar year 2025 and the last monetary policy of the financial year 2024-25 will be on February 7. In such a situation, the effect of the change in America can be seen on both these events.
Recently RBI has got its new chief. In such a situation, Governor Sanjay Malhotra will also be under pressure to deal with the impact of the Federal Reserve’s policy. While the monetary policy of the Reserve Bank of India works to keep inflation under control at the domestic level, it also works to deal with foreign influence.
Will RBI’s monetary policy reduce EMI?
Now the question is whether RBI will cut interest rates on February 7, so that your EMI burden can be reduced. It was only after the December monetary policy that the country’s Finance Minister Nirmala Sitharaman had said the need to cut interest rates, so that growth in the country could be increased. But due to food inflation remaining high, the cut was not made then. At that time, it was not long since the US interest rate cut.
