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RBI Governor Sanjay Malhotra gave information about Katoti in interest rates at 10 am on 9 April.
Reserve Bank of India i.e., RBI has reduced the repo rate from 0.25% to 6%. Earlier it was 6.25%. That is, loans may be cheap in the coming days. At the same time your EMI will also decrease.
In the new financial year, RBI Governor Sanjay Malhotra gave information about the decisions of RBI’s first Monetary Policy Committee meeting at 10 am today. The meeting started on 7 April.
In February this year, RBI cut the repo rate by 0.25%.
Earlier, in the last meeting of FY 2024-25, RBI had cut interest rates by 0.25%. In the meeting held in February, the interest rates were reduced from 6.5% to 6.25%. This deduction was done by the Monetary Policy Committee after about 5 years.
What will be the change due to decrease in repo rate?
After decreasing the repo rate, banks can also reduce their interest rates on loans like housing and auto. At the same time, if the interest rates are low, housing demand will increase. More people will be able to invest in real estate. This will boost the real estate sector.
What is the repo rate, how is the loan cheaper?
The interest rate at which RBI gives loan to banks is called repo rate. Due to low repo rate, the bank will get a loan at low interest. If banks get loans cheaper, then they often pass the benefit to customers. That is, banks also reduce their interest rates.
Why does the Reserve Bank increase and reduce the repo rate?
Any Central Bank has a powerful tool to fight inflation as a policy rate. When inflation is very high, the Central Bank tries to reduce money flow in the economy by increasing the policy rate.
If the policy rate is high, then the loan from the Central Bank to the banks will be expensive. In return, banks make loans expensive for their customers. This reduces money flow in the economy. If the money flow is low, there is a decrease in demand and inflation decreases.
Similarly, when the economy goes through a bad phase, there is a need to increase money flow for recovery. In such a situation, the Central Bank reduces the policy rate. This makes banks cheaper from central bank and customers also get loans at a cheaper rate.
RBI Governor said 8 big things …
- The committee unanimously voted in favor of reducing the repo rate from 0.25% to 6%.
- The committee decided to change its stand from neutral to incompatible.
- Domestic growth will also be disrupted due to impact on global growth due to trade friction.
- Higher tariffs will have an impact on export. There are signs of improvement in manufacturing activity.
- The fall in crude prices will help keep inflation under control.
- NPCI will give the right to decide on the limit of merchant UPI transactions from the consumer.
- Currently, the limit of Person-to-CRINT Payment is Rs 2 lakh.
- New guidelines will be released regarding gold loans.
What is GDP estimate for FY 2025-2026?
What is inflation estimate for FY 2025-2026?
Know what the figures of inflation say?
- Retail inflation has come down to 3.61% in February due to cheap pulses and vegetables. This is a 7 -month low of inflation. Inflation was at 3.54% in July 2024. In January 2025, inflation was 4.31%. The range of RBI’s inflation is 2% -6%.
- In February, wholesale inflation rose to 2.38%. Earlier in January, inflation was 2.31%. Inflation has increased due to increase in manufacturing cost of food products. The Ministry of Commerce and Industry released these figures today i.e. on 17 March.
RBI meeting usually takes place every two months
The Monetary Policy Committee consists of 6 members. Of these, 3 are of RBI, while the rest are appointed by the central government. The RBI meeting usually takes place every two months.
Recently, the Reserve Bank had issued a schedule for the meetings of the Monetary Policy Committee of FY 2025-26. There will be a total of 6 meetings in this financial year. The first meeting is being held on 7-9 April.
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The Indian market’s index Sensex is trading at 73,800 levels on 9 April on 9 April. The Nifty also has a decline of 150 points, it has come to the level of 22,400.
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