RBI Monetary Policy: Will loans become costlier in February? RBI will take decision regarding interest rates, know expert’s opinion
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RBI Monetary Policy: Interim Budget (Interim Budget 2024) after the Reserve Bank of India (Reserve Bank of India) is going to hold bi-monthly monetary policy meeting. The meeting is going to be held on February 6. It will be organized for three days. On February 8, Reserve Bank Governor Shaktikanta Das (Shaktikanta Das) will announce the results of the meeting. Now it is being told that the apex bank can once again keep the interest rates stable as before. Let us tell you that before this, the interest rates have been changed by the bank in February 2023. Experts say the central bank is unlikely to make any changes in policy rates in its upcoming bi-monthly monetary policy this week, as retail inflation is still near the upper end of the satisfactory range. The Reserve Bank has kept the short-term loan rate or repo rate stable at 6.5 percent for almost a year. It was last increased from 6.25 percent to 6.5 percent in February 2023. Retail inflation was at a high of 7.44 percent in July, 2023 and has declined since then. However, this is still high.
Retail inflation 5.69 percent in December
Retail inflation was 5.69 percent in December 2023. The government has entrusted the Reserve Bank with the responsibility of keeping inflation within the range of four percent with a variation of two percent. The three-day meeting of the Monetary Policy Committee (MPC) chaired by the RBI Governor will begin on February 6. Governor Shaktikanta Das will announce the committee’s decision on February 8. Bank of Baroda Chief Economist Madan Sabnavis predicted that the MPC will maintain status quo on both rates and stance. He said that this is because according to December data, inflation is still high and there is pressure on the food side.
Rates will be cut in August
ICRA Chief Economist Aditi Nair said that CPI based inflation is expected to come down in the financial year 2024-25, although the trend of monsoon will be important for this. He said that we do not expect any change in the rates or stance in the upcoming review. A rate cut can be seen only in August 2024.
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