RBI’s big decision on interest rates, bad news for those waiting for relief on EMI

RBI’s big decision on interest rates, bad news for those waiting for relief on EMI

RBI MPC Meet: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) has fixed the policy rate for the 10th consecutive meeting. The meeting comes at a time when interest rates have been on the rise after more than a year and a half of stagnation. On the other hand, Corona’s new Omicron variant has again posed economic challenges. The RBI has not given relief to those facing inflation, the results of the Monetary Policy Review have been released.

RBI’s big decision on interest rates, bad news for those waiting for relief on EMI
New Delhi: The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has fixed the policy rate for the 10th consecutive meeting. The meeting comes at a time when interest rates have been on the rise after more than a year and a half of stagnation. On the other hand, Corona’s new Omicron variant has again posed economic challenges. After the meeting of the Monetary Policy Committee (MPC) on Wednesday, Reserve Bank of India Governor Shaktikanta Das said that the Reserve Bank has decided to change the repo rate and reverse repo rate. No changes made.

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After the meeting of the Monetary Policy Committee (MPC) on Wednesday, Reserve Bank of India Governor Shaktikanta Das announced the decisions taken on interest rates and the general public suffering from inflation has not been given any relief. Announcing the results, Shaktikant Das said that the Reserve Bank has not made any change in the repo rate and reverse repo rate. Let it be known that there will be no change in interest rates after this decision of RBI.

No change in policy rates-

After the MPC meeting, RBI Governor Shaktikant Das said, “The Monetary Policy Committee (MPC) voted unanimously to keep the repo rate at 4 per cent. The reverse repo rate has also been kept unchanged at 3.35 per cent. With this, there has been no change in Marginal Standing Facility (MSF) and bank rates. It has been kept at 4.25 per cent.

What are repo and reverse repo rates?

The rate at which the Reserve Bank of India (RBI) lends to banks is called the repo rate. With these loans, banks give loans to their customers. This means that interest rates on loans are lower when the repo rate is lower and banks can raise interest rates when the repo rate rises. On the other hand, the reverse repo rate is the exact opposite of the repo rate and is the rate at which the RBI pays interest on deposits from banks. Liquidity in the markets is controlled by reverse repo rate.