No impact on EMIs as RBI keeps repo rate unchanged at 6.5%

Feb 8, 2024



New Delhi: There is no possibility of any impact on the loan. emi Expenditure as Reserve Bank of India' monetary policy committee (MPC) on Thursday decided to retain it repo rate Unchanged at 6.5%.
This is the sixth consecutive time that reserve Bank of India The repo rate has been kept unchanged at 6.5%. Repo rate is the rate at which RBI lends to banks.
The meeting of the six-member MPC began on Tuesday and its decisions were announced by RBI Governor Shaktikanta Das on Thursday. The Reserve Bank of India has projected GDP growth of 7% for fiscal year 2024-25, lower than the 7.3% expansion projected for the current fiscal year.
RBI Governor Shaktikanta Das said rural demand continues to pick up, urban consumption remains strong and the investment cycle is gaining momentum due to increased capital expenditure.
Das said that there are signs of improvement in private investment. Real GDP is projected to grow at 7 per cent for 2024-25, with growth in the June and September quarters at 7.2 per cent and 6.8 per cent, respectively. The growth rate in December and March quarter is estimated to be 7 percent and 6.9 percent respectively.
From May 2022, the RBI has increased the repo rate by a cumulative 250 basis points (bps) in an effort to tackle rising inflation. However, from February 2023, it has not adjusted the rate due to a slight reduction in inflationary pressures. inflation since then It has consistently hovered near the high end of its mandated 2%-6% range, exceeding its medium-term target of 4%.
The RBI is tasked by the government with maintaining retail inflation, measured by the Consumer Price Index (CPI), at a target of 4 per cent, allowing a fluctuation margin of 2 per cent in either direction.
It is up to the Monetary Policy Committee (MPC) to set the policy repo rate to meet this inflation target, while also considering the objective of promoting economic growth.



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