RBI On Repo Rate: The meeting of the six-member monetary policy committee of the Reserve Bank of India (RBI) started on October 7 and today the decisions taken in it will be announced by Governor Shaktikanta Das and it has been kept stable for the 10th consecutive time.
RBI On Repo Rate: The results of the 51st MPC meeting of the Reserve Bank of India (RBI MPC Meeting Results) have come. Announcing the results of the two-day monetary policy committee meeting, the central bank governor Shaktikanta Das said that this time too no change has been made in the policy rates (Repo Rate). That is, the EMI of your loan will neither increase nor decrease. This is the 10th consecutive time that the Reserve Bank has not made any change in the repo rate. After this, the repo rate remains at 6.50%. While the reverse repo rate has been kept stable at 3.35% and the bank rate at 6.75%.
5 out of 6 members are not in favor of change
The RBI governor, while explaining the decisions taken in the MPC Meet that started on October 7, said that this time 3 new members have joined the MPC and after considering other aspects including global conditions, during the meeting, 5 out of 6 members voted to keep the interest rates unchanged. Along with this, the RBI Governor said that the policy stance has been changed from Withdrawal of Accommodation to Neutral. He said that despite the fluctuating conditions at the global level, we have been successful in controlling inflation in the country and with this the economic growth has also gained momentum.
Impact of Repo Rate on EMI
RBI’s MPC meeting is held every two months and six members including Reserve Bank Governor Shaktikanta Das discuss inflation and other issues and changes (Rule Changes). Let us tell you here that the repo rate is directly connected to the customers taking bank loans. Its decrease reduces the EMI of the loan and its increase increases it. Actually, Repo Rate is the rate at which the central bank of a country lends money to commercial banks in case of any shortage of funds. Repo rate is used by monetary authorities to control inflation.
When the repo rate was increased continuously
The Repo Rate currently remains at 6.5 percent. Earlier, when inflation in the country became uncontrollable and crossed 7 percent. Then to control it, RBI had continuously increased the repo rate. It was increased several times from May 2022 to February 2023 and it increased by 2.5 percent. However, since then, no change of any kind was made in the repo rate by the central bank.
On one hand, the results were announced, on the other hand the market ran
When the RBI announced to keep the repo rate stable for the 10th consecutive time, the effect of this news was directly seen on the stock market. The market liked the decision to keep the Repo Rate stable amid the atmosphere of tension in the Middle East and the BSE Sensex, which was trading with a gain of about 150 points, suddenly ran up 411 points to reach the level of 82,046.48. Talking about BSE Nifty, it crossed 25,190.
