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The Reserve Bank of India’s Monetary Policy Committee (MPC) decided to maintain the repo rate at 6.5% in its monetary policy review despite growing risks to inflation brought on by the recent spike in vegetable prices. This means that interest rates on home, vehicle, personal, and other loans in the banking system will stay unchanged. The “withdrawal of accommodation” stance on monetary policy was also maintained by the central bank.

RBI Monetary Policy 2023-24: Key Takeaways – The Sparrow News

With the GDP printing at 7.6% in the second quarter, which was higher than anticipated, the RBI also increased its growth estimate for FY 2024 from 6.5% to 7%. The fiscal year’s inflation estimate of 5.4% stayed the same.

As of right now, interest rates on deposits and loans are fixed. The RBI recently increased the risk weights on retail loans, so some of these segments should cost more. Recently, a few banks increased the rate at which certain segments could deposit savings accounts.

There won’t be an increase in any of the repo rate-linked external benchmark lending rates. Due to the fact that their equated monthly instalments (EMIs) won’t rise, borrowers will experience some relief.

 

 

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