RBI Monetary Policy: The Reserve Bank of India (RBI) will hold its Monetary Policy Committee (MPC) meeting. The Monetary Policy Committee will convene for three days, from February 6 to February 8. Experts say that there is now little chance of an increase in EMI.
RBI Contemplates Maintaining Current Interest Rates
This week, a year after the previous boost, the RBI might decide to maintain the rates the same. This week, the Reserve Bank of India (RBI) will not be changing interest rates. Even though the government has closed the budget deficit, it was anticipated that rates will drop shortly, but this is not going to occur.
Interest Rate Decline Expected in Second Half of the Year
Actually, the majority of analysts and bankers predict that the rate decrease will only take place in the second half of the year. There’s not much chance of an interest rate drop this time. The issue with international trade is the primary cause of this. The Houthi rebels in Yemen pose a threat to international supply chains by assaulting ships. This could impact imports from India.
Warning of Higher Interest on Loans and EMIs in the Short Term
Rate cuts are not anticipated anytime soon, according to statements from the US Federal Reserve and the central banks in Britain. The Reserve Bank is pleased with the economy’s performance and the steady decline in inflation. You will pay higher interest on your loan and EMI in such a scenario, but by year’s end, it is anticipated that the rates will drop.
RBI’s Final Repo Rate Hike to 6.5 Percent in February 2023
In February 2023, the RBI raised its repo rate to 6.5 percent for the last time. In contrast, for the past 12 months, the policy rate has stayed constant. On February 6, the MPC will begin its three-day meeting, which will be presided over by the RBI Governor. On February 8, Governor Shaktikanta Das will make the committee’s decision public.