By Admin 
Rbi mpc decision: Following the three -day meeting of the Monetary Policy Committee (MPC) under the chairmanship of RBI Governor Sanjay Malhotra, it was announced on Wednesday that no change will be made in the interest rates (repo rate). That is, after August, now in October also the repo rate has been kept at 5.5 percent. Earlier, the repo rate was cut by up to 100 basis points, cutting this year. However, RBI has estimated to increase the GDP growth rate to 6.8 percent.
This year is the second time that the repo rate has been kept unchanged. It is worth noting that this was a very important meeting of the RBI Monetary Committee after the US President Donald Trump applied additional tariff rates over the required goods. The market experts, however, were already expecting that the RBI could decide not to make any changes in the repo rate for the second time due to the strength of GDP and inflation in control.
No change in repo rate
This decision of RBI MPC came at a time when the prices of things used in everyday have been reduced after implementing the GST reform. Along with the GST reform on the decision of RBI, the H1B visa fee has also been affected by the recent US government.
This decision has come at a time when economic uncertainty remains globally. Issues like GST reform and inflation control are important at the domestic level. The market hoped that RBI would take a vigilant stand this time.
There is no relief for those taking loans and EMIs at the moment, because interest rates will remain the same as before. There will also be no change in the cost of borrowing for banks. Investors indicate that RBI currently wants to maintain stability and is not in the mood for any major change. Its impact can be seen on the stock market, bond market and the speed of rupee.
What does this decision mean?
Being stable interest rate can show mixed effect on them. Investors are relieved that loan demand will remain. Interest rates did not increase, meaning home loan and auto loans will not be expensive. Foreign investors (FII) indicate that RBI is taking care with caution. This may bring some stability in the market, but the impact of global uncertainties will still remain.
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