RBI Interest Rates: A few days ago, an important 3-day meeting of the monetary coverage committee regarding the Reserve Bank of India’s decision and its result was held. This time too, however, the Reserve Bank of India has no longer made any change in the repo rate, meaning no cut in interest rates over again. Even so, it remains a point of concern ľ as to why the repo rate has kept changing, but in the case of any shift, the RBI Governor seems not to. For those of us dying to comprehend the very matter of the changing nature of the repo rate, it is shared below.
In the meeting of the monetary policy committee, most of the people from this nation were expecting a declaration of the results from the RBI Governor. But after the results were declared by the RBI, a lot of anger was in the air, and now everyone wants to know what could be the reason behind not changing the repo rate why there has been no change from the RBI. So, through this article, we will give you all the details about it.
Indian Rupee Weakens Against Dollar
The results of the monetary policy committee meeting held a few days ago have come out. However, the Reserve Bank of India has once again, though for the 11th consecutive time, decided not to change the policy interest rate. This means that your current EMI will remain unchanged, and the interest due for payment will neither increase nor decrease. The experts all heralded the prospect of no cut in the prevailing interest rates this time, and it was a time-out-and-out prior to this announcement.
Why was the repo rate not changed?
As you all know, the Indian rupee has constantly been dropping in price towards the dollar. Presently, the price of the dollar stands at 84.75 in Indian rupees, its lowest-ever price. Under the pressure of the rupee dropping ground, the Reserve Bank of India is continuously selling its dollar reserves with the intention to help the rupee. This will be the reason why the Reserve Bank isn’t always cutting interest prices, because it will endanger inflation rising, which would, in turn, have a negative effect on the economic system of India.
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