RBI News / Good news for home-car loan borrowers, RBI will give this gift on repo rate

Vikrant Shekhawat : Jul 30, 2023, 08:00 PM
RBI News: Good news for home-car loan borrowers. The Reserve Bank of India may maintain status quo on key interest rates for the third time in a row in its upcoming bi-monthly policy review. Experts predicted this. He said that despite rate hikes by the US Federal Reserve and the European Central Bank, domestic inflation remained within the tolerable range of the RBI. The RBI started raising interest rates from May last year, though the repo rate has remained stable at 6.5 per cent since February this year.

Not changed twice

This remained unchanged in the last two bi-monthly policy reviews in April and June. The six-member Monetary Policy Committee (MPC) headed by the RBI Governor will meet on August 8-10. Governor Shaktikanta Das will announce the policy decision on August 10. Bank of Baroda Chief Economist Madan Sabnavis said, “We expect RBI to maintain status quo on rates. This is because inflation is currently running below five per cent, but there will be some upside risk as inflation rises in the coming months. Upasana Bhardwaj, chief economist at Kotak Mahindra Bank, said, Since the cash position has become favorable after the announcement of withdrawal of Rs 1000 note, we expect the RBI to stick to the current stance.

All eyes on retail inflation

All eyes will be on how the domestic inflation trend plays out, he added. ICRA Chief Economist Aditi Nayar said the CPI or retail inflation is expected to go above six per cent in July 2023 on the back of a jump in vegetable prices. He said that in such a situation, with the status quo on the repo rate, a very sharp comment from the MPC can be seen.