Repo rate may come down in coming months! Piyush Goyal trusts RBI – India TV Hindi

Interest rates have increased by 2.50% in the last one and a half year.- India TV Paisa
Photo: Piyush Goyal Office/Reuters The interest rate has increased by 2.50% in the last one and a half years.

Almost everyone is waiting for loans to become cheaper and EMIs to come down. Commerce and Industry Minister Piyush Goyal also expressed hope on Monday that this time the Reserve Bank of India will cut the policy rate i.e. the repo rate. With inflation under control, Goyal feels the central bank may ease next time. We inform you, the policy rate (Repo) remains at a high level of 6.5% from February 2023. RBI uses repo rate to control inflation.

The economic base of the country is strong.

According to the news, Goyal said that the country’s economic base is strong and inflation is under control. He said that the 10-year average inflation rate in India has been around 5 to 5.5 percent. It was a decade of excellence. This led to a significant drop in interest rates and the central bank became stronger and now has the ability to lower interest rates. He said that of course, in the last one and a half years, after the crisis in Ukraine, the interest rate has increased again by 2.50%.

Inflation is largely under control.

“Now that inflation is under control, I am hopeful that the interest rate situation will change and it will come down soon,” Goyal said. Whether this reduction in interest rates occurs in the next monetary policy review or another monetary policy review after that. If the Reserve Bank lowers the repo rate, the cost of borrowing for both companies and individuals will fall. The result will be that the EMI (Monthly Loan Installment) will be lower. On February 8, the central bank kept the policy rate repo at 6.5 percent for the sixth time in a row.

It was 5.1 percent in January.

RBI’s next monetary policy review will be held on April 5. Inflation based on Consumer Price Index stood at 5.1 percent in January this year as against 6.52 percent in the same month a year ago. Inflation based on the wholesale price index stood at a three-month low of 0.27 percent in January. The decline in the wholesale inflation rate is mainly due to the decline in food prices. Goyal also said that the government aims to create an economy of $30,000 billion to $35,000 billion by the year 2047, from $3,700 billion at present.

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