Good news is coming this week. The Reserve Bank (RBI) will introduce a monetary policy on 6 June. He can announce the reducing repo rate 25-50 basis points. The meeting of RBI’s Monetary Policy Committee (MPC) will begin on June 4. The central bank will announce the results of the three -day meeting on 6 June. RBI Governor Sanjay Malhotra will announce a decrease in interest rate on June 6 at 10 am.
SBI expected to reduce rate cut by 50 bps
Most of the economists say that the RBI repo rate will reduce the RBI repo rate by 0.25 per cent in June. This will reduce the repo rate from 6 percent to 5.75 percent. The SBI has predicted a shortage of 50 basis points in the repo rate in its recent report. If the repo rate reduces 50 basis points, it will come to 5.5 percent. In such a situation, home loan customers will benefit more. The EMI of their loan will decline a major decline.
This year it will be the third rate cut
RBI started reducing the repo rate in February this year after waiting for several years. In February, he reduced the repo rate 25 basis points. In April, he again reduced the repo rate by 25 per cent point. Bank of Baroda Chief Economist Madan Sabnavis said that the inflation is under control and the condition of liquidity is good. In such a situation, on June 6, MPC can announce a shortage of 25 basis points in the repo rate.
Food inflation is also under control
Ecra’s Chief Economist Aditi Nair also said that the index of vegetables is expected to go down further. This will reduce food inflation. Inflation has come down to 3.16 per cent in April, which is the lowest retail inflation in the last 69 months. It is estimated to be 3.5 percent this year. Experts say that the data of GDP growth in the fourth quarter has also increased enthusiasm. It was 7.4 percent. In this way, the RBI can cut the repo rate given good growth and low inflation.