Budget The middle class is happy to make income tax free up to Rs 12 lakh. After a long time by the government, he has been given this happiness, which he was demanding for a long time. However, this series of happiness is not going to stop here. On Friday, he can get another great happiness. Actually, the Reserve Bank of India (RBI) can cut interest rates after about 5 years. If this happens, the EMI of all types of loans including home loan, car loan will decrease.
This will be the first cut after May 2020
Economists believe that RBI will cut the repo rate in February for the first time after 2020 to speed up the sluggish GDP growth. Economists hope that when the monetary policy committee completes its review on 7 February (Friday), the RBI will cut the repo rate by 25 basis points. This will be a rate cut for the first time in 5 years.
Pressure of rate cut from the government
Finance Secretary Tuhin Kanta Pandey said on Sunday that the government is promoting development with its fiscal policy. Therefore, it is “appropriate time” to cut rates by the Reserve Bank of India (RBI). He said, “Inflation is decreasing at both domestic and external levels.” The official said that central banks around the world are cutting rates as inflation is decreasing. “We are maintaining fiscal deficit, because if we do not do this, it can be inflation. We have also contributed to efforts to promote consumption through several measures including income tax relief. Now people are waiting for measures from the point of view of monetary policy.
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