The Reserve Bank of India is set to bring good news for ordinary citizens, especially those looking to take new loans or those who already have loans for a house, car, or other purposes. There is a possibility of a further cut in the repo rate by the end of this year. This could provide relief to citizens currently paying EMIs. RBI Governor Sanjay Malhotra has provided information regarding this. A decision on this is likely to be taken in the Monetary Policy Committee (MPC) meeting to be held in December. The MPC meeting is scheduled for the first week of December, and current economic indicators suggest the possibility of a repo rate cut.
Governor Sanjay Malhotra, while speaking to the media, said that the Monetary Policy Committee (MPC) is likely to cut rates in October. The latest data further strengthens this possibility. The final decision on this matter will be taken at the RBI's MPC meeting. The MPC meeting is scheduled for the first week of December. This meeting will be held from December 3 to 5, and this statement has raised expectations among consumers. The MPC had reduced the repo rate by 100 basis points between February and June, keeping it at 5.5 percent in August and October. The Governor said that the primary objective of the central bank is price stability, while supporting growth is a secondary objective. Therefore, no bank will adopt an aggressive or completely defensive stance.
In the past few days, the rupee has been struggling against the dollar. There is fear that the rupee might fall to its lowest level ever, and the possibility of an EMI reduction seems almost like a distant dream. The real estate sector and all related industries are expected to benefit from a cut in interest rates. If the RBI reduces the repo rate by 25 basis points next week, the repo rate will drop to 5.25%, which could also provide relief in loan EMIs.