Home loan buyers happy with RBI announcement..!?

Sowmiya Sriram
Home loan buyers happy with RBI announcement..!?
The two-day monetary policy meeting chaired by bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india governor Shaktikanta Das began on december 6 and the results of the meeting were announced on december 8. In line with market expectations, the Monetary Policy Committee chaired by RBI governor Shaktikanta Das kept the repo rate unchanged at 6.5 percent. Thus there will be no change in retail bank interest rate. The 6.5 percent repo rate was announced in the 5th MPC meeting without any change while the banks fixed the interest rate for their loan servicing based on the Reserve Bank's repo rate.
Therefore, the interest rate for all loans such as home loans, car loans, jewelry loans, and personal loans is not likely to increase, but banks can increase the interest rate if they want to increase their profit. But if interest rates are raised, most banks will lose business. Thus the interest rate will continue to be the same as other banks. If banks do not raise interest rates following the RBI decision, there will be no change in the EMI amount for people's loans. RBI has not hiked its interest rate in April, June, August, and october meetings, and december has also joined it.
 RBI governor Shaktikanta Das said in this meeting that the country's inflation has come down to a large extent by controlling the money flow of the country through monetary policy. Food inflation is likely to rise again in december, he said at the end of the monetary policy meeting. The RBI has announced no change in the inflation target of 5.4 percent for the fiscal year 2024 and raised the country's economic growth target to 7 percent from the previous measurement of 6.5 percent. Moreover, the RBI governor told the meeting that the target of reducing the country's inflation to 4 percent has not yet been achieved. Similarly, if food inflation rises in december, action will be taken in the next monetary policy meeting, he said.
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