How is the mood at the RBI after the election results? Tomorrow the decision on the IME will be made.
Lok Sabha elections are over; Now, if there is any loan in his name, this news may be useful to you. Yes, the decision whether your loan EMI will increase or you will get relief will be taken tomorrow i.e. June 7. In fact, the three-day meeting of the Monetary Policy Committee of the Reserve Bank of India began on the 5th, whose decision will be taken on Friday. On June 7, RBI Governor Shaktikanta Das will brief the repo rate decision. The current repo rate is 6.50%. At the same time, there has been no change in the repo rate for the last 7 times.
Second meeting of the new year
This is the second MPC meeting of the new financial year. The RBI is expected to maintain its tight monetary stance in the policy review due on Friday amid strong economic growth and uncertain inflation outlook. At this moment the results of the elections in the country have arrived. A coalition government is going to be formed in the country under the leadership of the BJP. In such a situation, the big question is whether or not the EMI of home loans will be reduced before the formation of a coalition government.
What is the opinion of the experts?
According to economist Pranab Sen, looking at the election results, even if the same people are in the government, it will be decided in the coming days whether they will maintain the same stance. That is why the level of uncertainty has increased a lot. RBI will have to take this into account. According to SBI’s Soumya Kanti Ghosh, the government can work with a deficit slightly below 5%, possibly between 4.9% and 5%. Inflation is on its gliding path and will not drop to 4% in the short term. But it will remain around 4.5% for most of the year. Taking into account the current situation, the current pace of inflation and the current growth trajectory, the RBI has forecast an average inflation of 4.5%; The market is also in line with that forecast.
What is the repurchase rate now?
In a survey conducted in May, 71 of 72 economists had expressed hope that the MPC would leave the repo rate unchanged during its June 5-7 meeting and would keep it at 6.50%. Furthermore, most of these economists believe that the 6.50% rate is the highest point for the repo rate in the current period. The repo rate remains at a high level of 6.5 percent since February 2023. Amid the booming economy, the MPC is believed to avoid cutting interest rates. The central bank last increased the repo rate to 6.5 percent in February 2023 and has since kept it unchanged seven consecutive times. The MPC includes three external members and three RBI officials. The external members of the rate fixing committee are Shashank Bhide, Ashima Goyal and Jayant R Verma.
Inflation expected to remain under control
Inflation is expected to remain below five per cent from October to the end of the 2024-25 financial year. On the RBI’s expectations, Dhruv Aggarwal, Group CEO, Housing.com and PropTiger.com, said that the Indian economy has continued its strong performance and achieved an impressive growth rate of 8.2 per cent in 2023- 24, which was seven percent in 2022. 23.
