RBI MPC Meeting: The three-day Monetary Policy Committee meeting of the Reserve Bank of India has started and on October 9, 2024, RBI Governor Shaktikanta Das will announce the decision of the Monetary Policy Committee. People expecting cheaper EMIs after the US Federal Reserve’s decision to cut interest rates in September 2024 are expecting the same from RBI.
Crude oil increases concern over reduction in inflation
It is a matter of relief for RBI that the retail inflation rate has remained below its tolerance band of 4 percent for two consecutive months in July and August. But the matter of concern is on the front of crude oil prices. After the Iran-Israel tension, the prices of crude oil have increased by about 10 percent. On the MPC committee meeting of RBI, Shishir Baijal, Chairman and MD of Knight Frank India, said, RBI will not make any change in its policy rates in the Monetary Policy Committee because further clarification is yet to come regarding inflation due to base effect. There is a danger of inflation increasing due to the impact of concerns of global tension in the Middle East on crude oil prices. He said, despite high interest rates, the pace of India’s economic growth remains fast, while home sales, which reflect consumption, remain fast. Due to these things, RBI will keep the repo rate at 6.50 percent for now.
Loans will become cheaper in the coming days!
Yes Bank has also issued a research note regarding the meeting of the Monetary Policy Committee. In its report, the bank said, we do not expect RBI to cut interest rates in the MPC meeting. But the tone of RBI will clarify its policy regarding the future. According to Yes Bank, RBI will keep in mind the risks due to global commodity prices and inflation in America before cutting interest rates. But it is certain that whenever interest rate reduction starts, there is a possibility of interest rate reduction by 50 to 75 basis points.
Reduction in interest rates possible from December
Reuters reported in its recently released poll that most economists believe that RBI can cut interest rates by half a percent i.e. 50 basis points in the next six months, which will not start with the MPC meeting in October but in the month of December. This can be done through the meeting of the Monetary Policy Committee. According to the poll of economists, the repo rate may come down to 6 percent.
read this also
Stock Market Crash: PM Modi had advised to invest in PSU stocks, now shares are falling heavily!
