Big decision of RBI, did not change repo rate for the 7th consecutive time, fight against inflation will continue

The Reserve Bank of India (RBI) has not changed its February monetary policy for the seventh consecutive time. There has been no change in the repo rate even after the first bi-monthly monetary policy review of the current financial year. This time also RBI has kept the repo rate at 6.5 percent. Due to no change in the repo rate, the general public will not get relief in EMI.

The first meeting of the Reserve Bank of India Monetary Policy for the financial year 2024-25 was held on April 5. It is believed that just before the elections, RBI may surprise with its decision but RBI has not made any changes. Along with this, efforts are also going on to bring down inflation to four percent. At the same time, the policy rate has been kept unchanged with the aim of accelerating economic growth amid global uncertainty. This is the seventh consecutive time that the repo rate has not been changed.

Along with this, the Central Bank has estimated the GDP (Gross Domestic Product) growth rate to be at seven percent for 2024-25. Whereas retail inflation is estimated to be 4.5 percent in 2024-25. Repo is the interest rate at which commercial banks borrow from the central bank to meet their immediate needs. RBI uses it to control inflation. Keeping the repo rate at 6.5 percent means that there is less possibility of change in monthly installment (EMI) on various loans including house, vehicle. Giving information about the decision taken in the three-day meeting of the Monetary Policy Committee (MPC) that began on Wednesday, RBI Governor Shaktikanta Das said, “Considering the current situation, the MPC has decided to maintain the policy rate at 6.5 percent.” Have decided.

He said that with this the MPC members have also decided to maintain their decision to withdraw the accommodative stance to bring retail inflation in line with the target. RBI has the responsibility of keeping retail inflation at four percent with a variation of two percent. The Reserve Bank had increased the repo rate to 6.5 percent in February 2023. Before that, the policy rate was increased by 2.50 percent for six consecutive times from May 2022.

India’s GDP will grow rapidly
RBI Governor Shaktikanta Das said that India’s economy will improve in the financial year 2024-25. Indian economy will grow at the speed of seven percent. GDP will grow at the rate of 7.1 percent in the first quarter of financial year 2025, 6.9 percent in the second quarter and seven percent in the third-fourth quarter.