Reserve Bank Of India / The witch of inflation stopped RBI's steps again, did not get the gift of cheap loan

Reserve Bank Of India: The Reserve Bank of India (RBI) has once again kept the repo rate stable in the latest review meeting of its Monetary Policy Committee (MPC). It remains at 6.5%, and this is the 11th consecutive time that no change has been made in it. This step has been taken in view of the current level of inflation and global economic uncertainties. However, this has disappointed those waiting for cheap loans and EMI cuts.

Inflation: Major Challenge

RBI Governor Shaktikanta Das admitted that rising inflation is affecting the country's economic growth. GDP growth in the second quarter was lower than expected, especially due to sluggishness in the manufacturing sector. However, inflation is expected to come down between January and March 2024.

The RBI has set a target of maintaining retail inflation within 4%, but at present rising prices are far from this target. Apart from this, keeping inflation in mind, the RBI has lowered the GDP forecast for FY 2025 to 6.6%.

CRR cut: Improvement in liquidity

The RBI has cut the Cash Reserve Ratio (CRR) by 0.50% to increase liquidity in banks. It has been reduced from 4.5% to 4%, which will increase additional liquidity of Rs 1.16 lakh crore in the banking system. This decision will increase the lending capacity of banks, which will make it easier for common people and businessmen to get loans.

Festive demand and improvement in rural economy

The increasing demand in the market during the festive season and economic improvement in rural areas are positive signs for the Indian economy. Shaktikanta Das said that the demand for loans in the banking sector remains, indicating that the financial sector is in a strong position.

RBI's new move: Podcast service

To increase public awareness, RBI has announced the launch of podcast service. Under this initiative, citizens will be able to easily understand RBI's policies and financial information. This step will help the central bank to establish better communication with the public.

Future direction

The RBI has clarified that inflation and global economic factors are being closely monitored. There is no possibility of change in the repo rate till the next meeting in February 2024. However, steps like reduction in CRR and increasing liquidity are expected to provide relief to the economy.

Conclusion:

The current stance of the RBI is focused on controlling inflation and maintaining economic stability. However, the general public and businessmen hope that there will be a reduction in interest rates and relief in EMI in the coming time.