RBI MPC Meeting / Will the burden of inflation increase or will your EMI reduce, the decision will be taken today

Vikrant Shekhawat : Apr 05, 2024, 08:18 AM
RBI MPC Meeting: The Monetary Policy Committee meeting of the Reserve Bank of India is going on from April 3 to April 5. This is the first meeting of the financial year 2024-2025. In such a situation, the decision whether your loan EMI will be cheaper or the burden of inflation will increase will be taken today i.e. Friday at 10 am. People are expecting a cut in the repo rate from this meeting being chaired by the RBI Governor. Due to reduction in repo rate, people's loan EMI will reduce.

Let us tell you, but RBI has not cut the repo rate for a long time. According to experts, the Reserve Bank of India can once again provide relief to the people in the new financial year. According to experts, the Central Bank will not increase the repo rate this quarter also. On 5th April i.e. today the Monetary Committee of RBI will announce the repo rate.

Relief may be available for the seventh consecutive time

Earlier, in the last meeting of FY 24, the MPC had not made any change in the repo rate for the sixth consecutive time. It was decided to keep it stable at 6.5 percent. According to the SBI Research report, structural changes are taking place in the American markets, where the unemployment rate is low and there are more job vacancies.

When will the shock occur

According to the report, at present inflation is increasing due to the rise in food prices. The report expects that deposits and credit may grow by 14.5-15% and 16.0-16.5% respectively in FY 2025. According to the report, Reserve Bank of India can cut rates only in the third quarter of financial year 2025.

Focus will be on these

Bank of Baroda Chief Economist Madan Sabnavis said that RBI will strictly follow the inflation data. The central bank has estimated that inflation will be less than 5 percent only in the second quarter. In such a situation, one can expect the interest rates to come down provided the monsoon conditions are good. He said inflation will be more driven by monsoon shocks and higher food prices.

In the February policy meeting, the RBI had estimated inflation measured by CPI to be 5.4 percent for fiscal year 2024 and 5 percent in the March quarter. On the assumption of normal monsoon in the next financial year, RBI expects it to be 5 per cent in the first quarter, 4 per cent in the second quarter, 4.6 per cent in the third and 4.7 per cent in the fourth quarter.

This sector will benefit

The sector which is being reported happy with the first meeting of the new financial year is none other than real estate. Experts associated with this sector estimate that RBI will not make any change in the repo rate again. This means that RBI will not increase interest rates. By the way, common people are waiting to know when they will get relief from this increased inflation.