By Admin 
RBI Monetary Policy Mending: The first major economic movement of FY 2025-26 is about to begin. The Reserve Bank of India (RBI) is going to start its three -day Monetary Policy Committee (MPC) meeting from Monday, 7 April. And its final decision will come to the fore at 10 am on Wednesday, April 9. Now you must be wondering what is special for the common man in this? Let us understand in easy language that what is going to come out of this meeting for you.
Will your loans be cheap?
In February 2025, the RBI took a major step, the repo rate was reduced by 0.25 per cent, ie the repo rate was reduced from 6.5 per cent to 6.25 per cent. This happened for the first time after about five years. In such a situation, it is now expected that this time also the RBI can cut 0.25 percent further. That is, taking a loan can be cheaper. If you explain in easy language, you can get some relief in EMI. According to the report of Financial Express, institutions like Bank of Baroda say that a total reduction of 0.75 percent can be seen in the whole year.
What is a repo rate?
If you understand in easy language, the repo rate is the rate on which RBI gives loan to banks. When this rate decreases, banks also start giving loans to people at cheap rates, which reduces EMI and increases the expenditure in the market.
Inflation is under control, now turn of growth
RBI’s target of inflation control is between 2 percent to 6 percent and India remains in this band. This means that now RBI’s focus will be on boosting growth. This can be news of small business, startups and the general public.
How to benefit India in world developments?
In fact, US President Donald Trump has announced to impose heavy tariffs on 60 countries, including India and China. These tariffs will be from 11 percent to 49 percent and will be implemented from April 9. At the same time, RBI will announce its policy on the same day.
Now it can become a chance for India. If countries like China, Vietnam, Bangladesh become expensive in the American market, then there can be a place for Indian exporters. That is, our exporters can get a new Window of Opportunity.
So what to see now?
Actually, in such a situation, the question is how RBI will balance. That is, the needs of domestic development on one side, the changing atmosphere of global trade on the other side. Now in such a situation, the question is big whether the rate will be cut again? Will home loans be cheap and will there be relief in the EMI of auto loan. Apart from this, the question is whether the MSME sector will get boost in the new financial year from RBI? The answer to all these questions will be found on April 9 at 10 am.
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