By Admin 
RBI Rate Cut: The Reserve Bank of India (RBI) can once again cut the interest rate. The bank’s Monetary Policy Committee (MPC) is scheduled to be held in April next month. Its results will be announced on 9 April. There may have been a decrease in retail inflation in the country, but due to the sluggishness of growth, the central bank has no other option but to reduce the interest rate.
Recent data has revealed that unbridled inflation has now been controlled in the country. CPI Inflashp has now come to 3.6 percent, which is the lowest in the last 7 months. The prices of vegetables have also reduced significantly, due to which the decline in food inflation is also going on. The Target of the Reserve Bank’s Inflation 4 percent is no longer a dream, but is going to be a reality.
Repo rate may decrease up to 6 percent
In a survey of Reuters between March 18-27, 54 out of 60 economists estimated that RBI could reduce their benchmark repo rate by reduced by 25 basis points to 6 percent in their meeting of April 7-9. Earlier, in the meeting of the monitoring policy, the interest rate was reduced by 25 basis points to 6.25 percent. This was the first cut in the repo rate in five years.
According to India Ratings and Research (IN-R), the interest rate is estimated to be cut three times in FY 2026, which will be equal to the total 75 basis points. According to the report of The Economic Times, Ind-R Chief Economist and Public Finance Head DK Pant said, the decision of the monetary policy will depend on inflation, liquidity and the prices of things at the world level.
What is a repo rate?
Explain that the repo rate is the rate on which the Reserve Bank of India gives a loan to the commercial banks in exchange for government securities so that its needs of liquidity can be met. The repo rate is low, which becomes cheaper. This also reduces the pressure of EMI to a great extent.
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