look news india
RBI repo rate cut: After America's central bank Federal Reserve, RBI in India can also cut interest rates in the coming days to provide relief to people from expensive EMIs. Most economists believe the RBI could cut interest rates by half a percentage point or 50 basis points over the next six months, starting with the Monetary Policy Committee meeting in December. Brokerage house UBS has also predicted a cut in interest rates in December.
50% cheaper loan!
Most economists in a Reuters poll said the RBI could cut borrowing costs by 50 basis points over the next six months. However, it will not start from the Monetary Policy Committee meeting (RBI MPC meeting) in October next month but from the meeting in December 2024. At present the policy rate i.e. repo rate of RBI is 6.50 percent, according to the survey of economists it can come down to 6 percent. Retail inflation remained below the RBI's tolerance band of 4 per cent in July and August.
Good news will be received in December 2024!
Economists said that even though the Federal Reserve has cut interest rates by 50 basis points, the RBI is in no hurry due to the strong economy and stable currency. In a survey of 76 economists, 63, or 80 per cent, say the RBI will leave the repo rate unchanged at the MPC meeting on October 7-9, 2024. While 12 say that the rates can be reduced by 25 basis points. While one believes that the repo rate can be reduced to 6.15 percent. RBI has not made any change in the repo rate after February 2023.
inflation is falling
Suman Chaudhary, economist at Acute Ratings, said unlike the Federal Reserve, the RBI is in no hurry to cut interest rates as the Indian economy is very strong. Food inflation is declining and is expected to be better than last year in the coming days. He said that reduction is possible in December 2024.