There is no relief from expensive EMI. The Reserve Bank of India has maintained its policy rates at 6.50 percent. RBI Governor Shaktikanta Das has made this announcement as per the decision taken in the meeting of the RBI Monetary Policy Committee. The RBI Governor said that out of the six members of the Monetary Policy Committee, 5 members have voted not to cut the repo rate. Despite the retail inflation rate being below the RBI’s tolerance band of 4 percent in the months of July and August, the RBI has not made any change in the repo rate.
Inflation risk due to global tensions
The RBI Governor said in his address that global tensions remain the biggest risk to inflation. The recent increase in metals and food prices poses a risk to retail inflation. He said core inflation has increased in July and August and retail inflation is likely to jump sharply due to the base effect.
The RBI Governor has projected retail inflation to be 4.5 percent for 2024-25. At the same time, inflation is estimated to be 4.1 percent in the second quarter of the current financial year, 4.8 percent in the third quarter, and 4.2 percent in the fourth quarter.
RBI did not give relief from expensive EMI
On no change in the repo rate, banking expert and founder of Voice of Banking Ashwani Rana said, the Reserve Bank has not changed the repo rate for the fifth consecutive time in 2024. The Reserve Bank’s efforts are on to control the inflation rate but according to the Reserve Bank, food inflation is still above the target.
Therefore, it has decided to keep the repo rate at 6.50 percent. He said, the customers of the banks waiting for the reduction in the repo rate have been disappointed. After the reduction in the interest rate of the Federal Reserve, it was felt that the Reserve Bank would also change the repo rate and give a gift to those paying expensive EMIs before the festivals. But this has not happened.
