look news india
The Reserve Bank of India will not cut the repo rate this year either. State Bank of India (SBI) Chairman C.S. Shetty has said that RBI is unlikely to cut the repo rate given the uncertainty on the food inflation front. The US central bank may cut interest rates in the monetary policy review to be presented by the Federal Reserve. If this happens, it will be the first time in more than four years. It is believed that central banks of other countries can also cut interest rates in line with the Federal Reserve.
May have to wait till the fourth quarter of the current financial year
C Shetty said, “Many central banks are taking independent decisions on interest rates. Although the Federal Reserve's interest rate cut will affect everyone, the RBI will take food inflation into account before deciding to cut interest rates. We also have the same view. We also believe that there is no possibility of a repo rate cut this year. It is difficult to cut the repo rate until food inflation comes down and for this we may have to wait till the fourth quarter (January-March 2025).
RBI kept the repo rate at 6.5% for the 9th consecutive time
Let us tell you that the Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das will decide on the repo rate in its next meeting to be held from 7 to 9 October. Retail inflation rose by 0.11 percent to 3.65 percent in August, from 3.54 percent in July. However, the inflation rate is below the RBI's average target of 4 percent. But the inflation rate of food items stood at 5.66 percent in August. In view of the high risk of food inflation, the RBI retained the repo rate at 6.5 percent in the August MPC meeting. This is the ninth consecutive time that no change has been made in the repo rate.