RBI Monetary Policy Update: Today is the last day of the meeting of the Credit Policy Review Committee of the Reserve Bank. , Credit policy will be announced by RBI at 10 am. Interest rates are likely to remain the same. All eyes are on what steps RBI will take to keep pace with growth and control inflation.
Since the repo rate will not go up, interest rates are unlikely to change. So the common man will not get relief. The reverse repo rate is also not expected to change. It is being said that no change will be seen for the 11th time in a row. The repo rate is 4 per cent and the reverse repo rate is 3.5 per cent.
The credit policy announced today is the first credit policy of this financial year
The credit policy announced today will be the first credit policy of this financial year. According to economists, the RBI is unlikely to increase the repo and reverse repo rates this time. Given the current rate of inflation, RBI may raise its inflation forecast. There is a picture of steep rise in the prices of edible oil, fuel and vegetables in the country.
The Reserve Bank has not changed interest rates for 10 consecutive times. At present the repo rate is 4 per cent, while the reverse repo rate is 3.35. Meanwhile, RBI Governor Shaktikanta Das had projected GDP growth at 7.8 per cent in the fiscal year 2022-23.
What is Repo Rate?
Repo rate is the rate at which banks borrow money from the Reserve Bank. An increase in the repo rate means an increase in the lending rate to the banks, while a decrease in the repo rate means that the bank gets cheaper money. This means that if the RBI raises the repo rate, then all banks have the option of increasing the lending rates for the customers. As it decreases, the interest rate decreases.
What is reverse repo rate?
Reverse repo rate is the exact opposite of repo rate. Banks borrow money from the Reserve Bank, just like the Reserve Bank borrows money from these different banks. So the rate charged for the same is called reverse repo rate.