RBI meeting this week, will loans become cheaper or will inflation increase further?

Amidst the aggressive stance of several central banks, including the US Federal Reserve, the RBI may decide to increase the repo rate by another 0.25 per cent in the upcoming review meeting.

RBI Meeting: The monetary policy meeting of the Reserve Bank of India is going to start this week. On hearing about this meeting of RBI, a stir has started among the people and people have started raising questions whether RBI will again increase the rates of repo rates this time. Will the EMI of the house increase again for the common people? It is being speculated that interest rates can be increased again in the first meeting of the new financial year to be held in the month of April. Will the loan be cheaper after this RBI meeting?

The RBI may decide to increase the repo rate by another 0.25 percent in the upcoming review meeting amid retail inflation remaining above the 6 percent level and the aggressive stance of several central banks including the US Federal Reserve. Let us tell you that the review meeting of the Reserve Bank's Monetary Policy Committee (RBI MPC) will start from today, April 3, and continue till April 6.

RBI can keep repo rate high

According to sources, RBI may keep the repo rate higher for some time. At the same time, while strengthening the next monetary policy, the two major factors on which the RBI MPC will discuss in depth. India's retail inflation crossed the RBI's upper target band of 6% in the first two months of 2023. Consumer Price Index (CPI) based inflation was 6.52 per cent in January and 6.44 per cent in February.

Inflation is also showing signs of decreasing

All eyes are on what Governor Shaktikanta Das does for interest rates in the Monetary Policy Committee meeting this week. Inflation is not only very high, but is also showing signs of slowing down as the country's economic growth is faltering. Global financial markets have turned full circle since the last MPC meeting in February. Traders' bets are swinging like a pendulum. To overcome the economic recession, to fight against inflation, all this has happened within four months. What does RBI do in these circumstances?