The Reserve Bank of India (RBI) has left interest rates unchanged. The RBI’s monetary policy decision will provide relief to the people by preventing an increase in loan EMI. Please tell us about the key points of this monetary policy and its effects.
The RBI Monetary Policy : An Indication of economic stability
This is great news for India’s economy! Interest rates remain steady, according to the Reserve Bank of India (RBI). The central bank has made this choice for the eighth time in a row. This decision will have a direct impact on the general public, as there will be no increase in loan EMIs.
The Monetary Policy Committee (MPC) meeting on Thursday made the decision. RBI Governor Shaktikanta Das announced the decision to maintain the repo rate at 6.5 percent. This is the rate at which commercial banks get loans from the central bank. This choice attempts to boost economic growth and manage inflation at the same time.
This RBI decision will yield numerous advantages. First, borrowers of personal, auto, and home loans would experience relief as their EMIs won’t increase. Secondly, this initiative will benefit both businesses and industries. Companies will be able to carry out their expansion and investment plans thanks to stable interest rates.
Rising inflation is a concern
However, the Reserve Bank of India (RBI) has raised concerns over inflation. “Inflation is coming down, but the process is slow and uneven,” Das said. He pointed out that the central bank aims to keep inflation between 2% and 6%. Retail inflation was at 5.08 percent in June, the highest level in the last four months.
The RBI also made some other important announcements. The proposal is to establish a public repository for digital lending apps. This will assist in dealing with unauthorized platform issues. Additionally, we have raised the transaction limit for UPI-based tax payments to Rs 5 lakh per transaction.
We will also improve the check clearing process. We will now clear the checks within a few hours of their deposit. This will make banking services faster and more efficient. Overall, this policy of the RBI is an attempt to strike a balance between economic stability and growth.
#RBIMonetaryPolicy #RBI #MonetaryPolicy #EMI #Creditpolicy #Reporate
