look news india
RBI Monetary Policy Meeting: The Reserve Bank today announced the decisions taken in the bi-monthly review meeting of the Monetary Policy Committee (MPC). In this, Reserve Bank Governor Shaktikanta Das said that no change has been made in the repo rate. This meeting started on Wednesday. Experts already believed that the Reserve Bank would not make any change in the repo rate. In the meeting, MPC has decided to maintain the repo rate at 6.5% with a majority of 4-2. This is the 11th time that the Reserve Bank has not made any change in the repo rate. SDF rate also remains at 6.25% and MSF rate at 6.75%.
What will be the effect of no change in repo rate?
Due to no change in repo rate, people will not get relief from expensive loans. If the repo rate was lower, banks would have given loans to people at lower interest rates. In view of inflation, it was expected that this time the Reserve Bank will reduce the repo rate.
CRR reduction
A decision on Cash Reserve Ratio (CRR) was also taken in the meeting. It has been reduced from 4.5 percent to 4 percent. That means it has been reduced by 50 basis points. However, this deduction will be made twice at the rate of 25-25 basis points. The first cut will be effective from December 14 and the second cut will be effective from December 28.
What is MPC?
MPC is the supreme body that takes decisions related to monetary policy. It is headed by Reserve Bank of India Governor Shaktikanta Das. There are a total of six members in this committee including the Governor. This is the last MPC meeting of Das’ current tenure. His tenure ends on December 10. The Reserve Bank has kept the repo rate constant at 6.5 percent from February 2023.
stock market decline
The stock market fell due to no change in the repo rate in the MPC meeting. At 10:15 am, the Sensex fell 167.32 points to 81,598.54. At the same time, Nifty also declined. Nifty fell 57.45 points to 24,650.95. Earlier on Friday morning, the market had started on the green mark.