00:00RBI i.e. Reserve Bank Modric Neti Samiti i.e. MPC meeting started in Mumbai yesterday i.e.
00:10on 5th February.
00:11The information of the decisions taken in this will be available on Friday.
00:16It is believed that the interest rate can decrease for the first time in 5 years.
00:21The last time was in May 2020 when interest rates were reduced.
00:25Then the RBI increased the repo rate by 4%.
00:28During the COVID lockdown, this step was taken to support the economy.
00:33The Ukraine war, the stoppage in the supply chain and the increase in global prices caused
00:37inflation.
00:38After this, the RBI increased the interest rate by 7 times and made it 6.5%.
00:45Since February 2023, there has been no change in the interest rates.
00:49In this case, it will be interesting to see what outcome comes out of this meeting.
00:54According to the maximum economists, there can be a cut of 25 basis points.
00:59But some economists say that if US President Donald Trump continues to threaten tariffs
01:05in this way, then the cut in the repo rate will be hasty.
01:08This can increase inflation in the financial market.
01:11There can be pressure on money from a low interest rate.
01:15At the same time, American debt can be more attractive for foreign investors.
01:20Bank of Baroda economist Deepnavita Majumdar has said that according to the recent IMF report,
01:25growth is at risk due to uncertainty.
01:28This can cause a cut in the RBI.
01:32Other economists say that the cut in rates had already started, which gave them time
01:37to approach the wait and watch.
01:40They said that balancing macro and geopolitical factors, there is a chance of a cut of 25
01:45BPS in the repo rate.
01:47Two new members of the RBI, Governor Sanjay Malhotra and Deputy Governor M Rajeshwar Rao
01:53are included in this meeting.
01:55Malhotra recently announced a solution to put a loan of Rs 1.5 lakh crore and it is
02:00considered a step to clear the path of change in rates.
02:04In spite of a cut in rates, there can be a higher cost of taking a loan due to lack of
02:09money.
02:10The government has supported a cut in interest rates and the repo rate is the rate at which
02:15the RBI lends money to the bank.
02:17Lack of this gives banks a cheaper loan and it also affects the loans of ordinary people,
02:23which can reduce the EMI of the loan.
02:26So what is your opinion on this news?
02:28And what do you think, is the repo rate expected to decrease from this meeting?
02:33Tell us your opinion in the comment box.
02:35And keep watching Good Returns for such updates.
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