Big news now. The decision of the Reserve Bank to keep the interest rate ‘as it was’.
Mumbai: Big news now. The Reserve Bank has decided to keep interest rates ‘as is’. The RBI has not given concessions to home and auto borrowers. The RBI has maintained interest at 4 per cent. As a result, EMIs on home and auto loans are unlikely to ease in the near term, the Reserve Bank of India said in its credit policy review on Friday. The main policy rates have not changed. Meanwhile, several experts had said that the RBI would not make any change in interest rates given the corona period.
Meanwhile, it has been decided to lower the annual growth rate forecast. According to the new estimates, the growth rate will be 9.5 per cent, up from 10.5 per cent at the beginning of the year. Inflation is expected to hover around 5.5 per cent if the monsoon stays normal, the RBI said. The Indian Meteorological Department has forecast good rains this year. Therefore, it is expected that the growth rate will be achieved as expected.
GDP is projected at 9.5 percent
It has been decided to reduce the GDP growth rate forecast. According to the new estimates, the GDP growth rate is expected to be 9.5 per cent. It has been acknowledged that the second wave of the Koran has affected the growth rate. The two-month-old forecast has been slashed by the Reserve Bank of India.
Announcing the RBI’s bi-monthly monetary rate today, it said it has decided to keep the repo rate unchanged at 4 per cent and the reverse repo rate at 3.35 per cent. Repo is the rate at which the RBI lends to commercial banks as required. This is a tool used by the central bank to control inflation. The reverse repo rate is the rate charged by RBI banks.
RBI announces credit policy .. Read on to see if your EMI will go down
The MPC has not changed the main benchmark rate in its last five reviews. The MPC has decided to maintain the policy rate for the sixth consecutive time. The Reserve Bank of India (RBI) had on May 22, 2020 revised its policy rate to reduce demand by cutting interest rates to a historic low.
Meanwhile, the government on Monday released India’s GDP data, which showed that India’s economy contracted by 7.3 per cent less than expected in the fiscal ended March 2021.
Prioritize inflation control
Controlling inflation is currently the top priority for the Reserve Bank. In fact, the RBI’s credit policy committee is looking at retail inflation in setting interest rates, which have come down to 4.29 per cent in April. On the other hand, the RBI also needs to maintain market liquidity. Currently, the RBI is in a good position in this regard. Interest rates are now cheaper when it comes to home loans. That is why the scope for EMI reduction for home loan customers is very low. Despite declining demand, banks are not in the mood to reduce rates on consumer loans and auto loans.
