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Is the fight against inflation over? The RBI will take an important decision on the EMI loan.

Sagar Patel

By Sagar Patel

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RBI interest rate may remain unchanged

On Thursday, the European Central Bank cut its interest rates. The ECB has made the decision to cut interest rates after 5 years. Now the test time is for the Reserve Bank of India. Whose monetary policy meeting will end today, that is, on Friday. After that, the RBI governor will announce the decision on interest rates. Inflation figures are at the lowest level for several months. The ECB has announced an interest rate cut.

The Federal Reserve could also announce interest rates soon. In such a situation, the people of India have high expectations from this meeting. These meetings took place at a time when the results of the Lok Sabha elections are known in the country, but no one has taken the oath of office of Prime Minister. There is news that the oath of office of Prime Minister will be taken on June 9, i.e. Sunday.

What is special is that interest rates increased from May 2022 to February 2023. The repo rate was increased by 2.50 percent. After which the official rate dropped to 6.50 percent. Since then there have been no changes in interest rates. This means that there have been no changes in interest rates in the last 7 meetings. The biggest question is whether or not there will be an interest rate cut at Thursday’s meeting.

This time there is no possibility of change either.

Experts believe that amid inflation concerns, the RBI will maintain the status quo on the policy rate. However, the European Central Bank and the Bank of Canada have begun to cut their respective official interest rates. Das will report the decision at 10 am after the RBI’s Monetary Policy Committee (MPC) deliberations. The three-day MPC meeting began on Wednesday. Experts said that since economic growth is accelerating, the MPC may avoid cutting the official interest rate.

Inflation has fallen for two consecutive months, but

Even though inflation figures were below 5 percent in the last two months. While the monthly inflation figures for April fell to 4.83 percent. While before, in the month of March, inflation was 4.85 percent. This means that inflation is under control. But according to SBI Research report, inflation based on consumer price index is estimated to be 5 per cent in May (the data will be released in the second week of this month). The RBI estimates that India’s inflation rate may be 4.5 percent in the current financial year.

Focus will be on monsoon

On the other hand, monsoon will also be the focus of the RBI MPC meeting. What kind of monsoon will it be and how will it be? On that basis, estimates of inflation and GDP will also be seen. Also, what kind of agricultural growth can be observed in the country? On the other hand, there will also be a debate about what kind of role the manufacturing and service sectors will play. The RBI governor can also mention all these things in his speech.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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