Shaktikanta Das will announce the decisions of interest rates in the meeting of the MPC ie Monetary Policy Committee today.
RBI Monetary Policy Latest Updates: RBI-Reserve Bank of India Governor Shaktikanta Das has announced that the status quo is being maintained in the repo rate. He has announced the decisions of interest rates taken in the meeting of the MPC i.e. Monetary Policy Committee. Repo rate affects the interest rates of banks. That’s why the announcement on the repo rate becomes important.
when will the decision come
RBI Governor Shaktikanta Das will give his statement regarding monetary policy at 10 am. At the same time, the press conference to be held after the meeting will be held at 12 noon.
Watch out for the Monetary Policy statement of the RBI Governor @DasShaktikanta at 10:00 am on October 08, 2021
— ReserveBankOfIndia (@RBI) October 7, 2021
What are the interest rates now
Experts say that the repo rate can remain stable at 4 percent. Interest rates can be increased in the coming six months. The reverse repo rate is 3.35 percent.
What is Repo Rate?
Repo rate is the rate at which the central bank of the country (Reserve Bank of India in India) gives loans to commercial banks in case of any shortage of funds. The repo rate is used by the monetary authorities to control inflation. Reduction in repo rate makes loans from banks cheaper. Like home loan, vehicle loan etc.
What is reverse repo rate?
Reverse repo rate is the rate at which the country’s central bank (Reserve Bank of India in India) takes loans from commercial banks located within the country. It can be used to control the money supply in the country.
Let us tell you that according to a research report by Morgan Stanley, the Reserve Bank will keep the interest rates unchanged in the upcoming monetary review and at the same time will continue its soft stance. The report said that in the current financial year, inflation based on the Consumer Price Index will be around five percent.
State Bank of India Chairman Dinesh Khara recently said that it appears that interest rates will remain unchanged. He had said, there is some improvement in growth. In such a situation, I think interest rates will not increase. However, the central bank’s remarks will mention inflation.
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