RBI MPC Feb 2025: The middle class is now waiting for double relief. Earlier, Union Finance Minister Nirmala Sitharaman made the annual income of up to ₹ 12.75 lakh of salaried employees tax-free by adding a standard deduction of ₹ 75 thousand. Now the middle class hopes that the RBI will help in reducing the burden of EMI of house and car by reducing the repo rate.
RBI MPC Meeting: After the big tax relief in the budget, the middle class is now waiting for the announcements of relief related to EMI of house and car. On February 1, the Finance Minister gave relief from income tax on annual income up to Rs 12 lakh in the budget for the next financial year 2025-26 and now on February 7, it is expected that RBI can cut the repo rate. This will be the last meeting of the monetary policies of RBI in this financial year 2025 and the new RBI Governor Sanjay Malhotra will make the first announcement related to the repo rate. This meeting will be held on February 5-7 and after this, the decision related to the repo rate will be announced on February 7.
The RBI Governor will announce this on Friday, February 7 at 10 am. On Friday, its live updates will be available on the site of Moneycontrol Hindi and it can also be seen on the official social media accounts of RBI.
Repo rate has been stable for 11 consecutive times
In the last monetary policy, the previous RBI governor Shaktikanta Das had decided to keep the repo rate stable. There has been no change in the repo rate for the 11th consecutive time and it remains at 6.5 percent. Now after about two years, a change is expected in it. The BofA Securities report has already predicted that the repo rate can be reduced by 0.25 percent to 6.25 percent in February 2025. Earlier in February 2023, the repo rate was increased by 0.25 percent to 6.50 percent. During the Corona epidemic, it was at 4 percent for a long time.
What will be the benefit of cutting the repo rate?
RBI is one of the few central banks that have not yet cut the benchmark rate. Now a cut is expected this time. What will happen by cutting the repo rate is that taking loans will become cheaper because this is the interest rate at which commercial banks take loans from the central bank to meet their needs. Due to reduction in repo rate, the possibility of reduction in EMI on all loans including home and car loans increases.
