look news india
State Bank SBI Chairman Dinesh Kumar Khara says that there has been no change in the repo rate in the country for a long time. But now the Reserve Bank of India (RBI) is expected to ease interest rates from the third quarter (October-December) of the current financial year 2024-25. The reason is that there are signs of reduction in the level of inflation in the country.
However, when the Reserve Bank of India released its bi-monthly monetary policy last week, it kept the repo rate stable for the 8th consecutive time. The Reserve Bank took this decision while focusing on the country's strong economic growth and inflation.
On this decision of RBI, Dinesh Kumar Khara said, “We expect the inflation rate to reach 4 percent in the third quarter starting from October. This possibility seems to be the right time for RBI when we can expect some reduction in the repo rate from it.
The world is also giving similar signals
At present, central banks in many countries around the world have started changing the repo rate. Which is indicating a decrease in inflation. For example, central banks in many advanced economies such as Switzerland, Sweden, Canada and the Eurozone have started a rate cut cycle until 2024. Also, expectations that the US Federal Reserve will cut interest rates still persist, although weaker than before.
Dinesh Kumar Khara said that interest rates in the banking system are already at their peak. Going forward, we will see some small changes in it. However, just last month, SBI had increased the interest rates on its preferred FD by 0.75 percent. The bank has increased the interest rate on FD deposits of 46-179 days by 0.75 percent.
