New Delhi: The Reserve Bank of India (RBI) has not made any change in the policy rates i.e. repo rate for the second time in a row. According to experts’ estimates, this time there has been neither an increase nor a cut in the repo rate. The policy interest will remain at 6.50 percent. The three-day meeting of the Monetary Policy Committee (MPC) of RBI ended on Thursday. RBI Governor Shakikant Das gave information about the decisions taken in the meeting.
Governor Shaktikanta Das said that all the members of the MPC voted in favor of not changing the repo rate. Along with this, he said that the inflation rate will remain above 4 percent in April-June. However, changing the old estimate, it has been reduced from 5.1 percent to 4.6 percent. Similarly, the inflation target for July-September 2023 has been reduced from 6.5 percent to 6.2 percent. This inflation estimate has been reduced from 5.9 to 5.7 percent for October-December and 6.0 percent for January-March 2024.
This is good news for the people who have taken home loans. The interest rate of most banks is linked to the repo rate. If the repo rate increases, then the interest rate also increases accordingly. Now this is the second time when the repo rate has not increased. This means that banks will not increase the interest rate. However, no fall in the current interest rate can be expected. Banks can maintain the status quo for the time being.
Impact on savings accounts and investments
With the increase in the repo rate, interest increases everywhere. If you have a loan then the burden on your pocket will increase. On the other hand, if you have put money in savings accounts, FDs, or any other kind of savings scheme, whose interest rate is regulated by the repo rate, then it can be disappointing for you. Experts believe that now banks will not increase the interest rate on savings or investment options.