The Reserve Bank of India's Monetary Policy Committee (MPC) has not made any changes in interest rates. At present, the repo rate is stable at 6%. At the same time, the CRR is up 4 percent. For the common man, it means that the loan will not be cheap for the customer nor will there be any relief in the EMI. Economists had already estimated no change in interest rates.
Experts believe that it is difficult to say that RBI will reduce interest rates this year, but the chances of the hike are increasing rapidly, as RBI can increase rates to curb inflation. RBI has reduced GVA growth forecast for FY2018. RBI has reduced GVA growth projection from 6.7% to 6.6% in FY2018. At the same time, GVA growth is estimated to be 7.2 percent in FY2019.
According to the RBI, retail inflation is expected to be 5.1-5.6 percent in April-September 2018. The retail inflation rate for October 2018-March 2019 is estimated to be 4.5-4.6 percent. The Reserve Bank has not made any change in its policy rates, including the repo rate. In such a situation, waiting for the loan of the lesser amount has become longer. Interest rates decreased in August as the Reserve Bank had reduced the repo rate by 0.25% in the Monitoring Policy Committee meeting on August 2.
After the deduction, the repo rate came down to 6%. Personal loans, home loans, car loans and business loans will be cheaper for the common people, while economic will increase and the industry will also get the benefit.