Break from expensive EMIs! RBI gave big relief on inflation –

: In the last five monitoring policy meetings, the Reserve Bank of India (RBI) decided to increase the repo rate to control inflation. As a result, the retail inflation rate decreased from 7.79 percent in April 2022 to 5.72 percent in December 2022. In this scenario, the RBI is now breathing a sigh of relief as the inflation rate has come down. Not only this, the RBI in its monthly bulletin said that the Monetary Policy Committee has touched its first milestone after retail inflation came down to 6 percent.

In this context, in the bulletin issued in January 2023, RBI said that the macroeconomic stability of the Indian economy has improved. Besides, the inflation rate has also moved within the RBI’s tolerance band. Not only this, the figures suggest that the current account deficit may also come down.

Meanwhile, the RBI said in its bulletin, it is clear from the latest data that the RBI’s monetary policy has exceeded its initial target of bringing inflation within the tolerance band. In this scenario, the RBI’s target is how to reduce inflation further in 2023, i.e. the current year, so that the inflation target for 2024 can be achieved.

In such cases, relief can be obtained from these information through RBI’s bulletin. Because the Monetary Policy Committee of RBI is going to meet in February. In such a scenario, it is assumed that the RBI will not change the policy rate. As a result the policy rate may remain unchanged.

Let us inform in this context that the retail inflation rate reached 7.79 percent in April 2022. Due to which the RBI raised the repo rate in a five-step monitoring policy meeting to control inflation. In this situation, the repo rate increased from 4 percent to 6.25 percent. Meanwhile, this has made borrowing more expensive. Also, EMIs have also become expensive. Hence, it is assumed that the expensive loan process may stop here.

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