In the country since February last year. And the Reserve Bank did not increase the interest rate. But do not reduce. Their repo rate (the interest they lend to commercial banks) hovered at 6.5 percent for a year. As a result, the interest on the loan is also on various expenses. Somewhere it is rather increasing. Stepping into another season of the Reserve Bank’s credit policy announcement, the question of the borrowers, who are in trouble for a long time due to high inflation and compounding huge interest, when will this burden of interest be reduced? RBI Credit Policy Committee meeting starts today. Their decision on interest will be announced on Friday.
Experts, however, almost all agree that the apex bank is likely to keep interest rates unchanged this time around. Because the rate of inflation has not yet come close to their target of 4 percent. The six-member Debt Policy Committee voted with some favoring interest cuts. But most probably won’t take that risk here.
According to economist Abhirup Sarkar, “GDP growth rate stood at 879 in the first three quarters of the last financial year (2013-14). While this figure is disputed, overall financial growth is good. But price inflation has not come down as expected. On the contrary, it is still uncomfortable in some commodities, including wheat.” . As a result, the main objective of the Reserve Bank will now be to reduce the prices of commodities and provide relief to the common man. So they will not cut interest rates now.” Aditi Nair, chief economist at ratings firm ITRA, believes the stance on credit policy is unlikely to change before August.
Reason- First: At that time the movement of monsoon in the country will be understood. Second: There will be signs of financial growth. Third: It will be clear whether the US central bank is cutting interest rates or not. In the words of Aditi, ‘the interest rate may be reduced in the coming October. RBI. But financial growth suddenly changed course in the middle quarters, a negative surprise If not Interest waiver is limited in that case too will be within 50 basis points