New Delhi: On October 9, 2020, the Reserve Bank of India (RBI), in its fourth bi-monthly monetary meeting, decided not to change the repo rate again with a steady stance. Currently, the repo rate is 4 percent. Meanwhile, RBI Governor, Shaktikanta Das said, “The MPC has decided to keep the current stance of monetary policy at least as necessary through the current financial year and next year.” have taken. The MPC has taken this decision unanimously in the meeting. The reverse repo rate also remains at 3.35 per cent.
RBI Governor Shaktikanta Das said, “The recent economic data are showing good signs.” There are strong signs of recovery in the global economy. Manufacturing, retail sales have seen recovery in many countries. Consumption, export have also shown improvement in many countries.
He said, there is hope for a boom in the economy. We are thinking of a better future. Things are getting better in all sectors. Hope of growth is showing. The outlook for rabi crops is looking better. This crisis of epidemic is now more focused on economic reforms than stopping Kovid.
No change in repo rate, what does it mean
Currently, RBI has not made any change in the repo rate, which means that the interest rate on the loan will remain the same. Therefore, due to no change in the repo rate, the loans linked to Marginal Cost Based Lending Rate (MCLR) will remain the same. This will be a relief for many people who were worried about the rise in interest rates of the loan.
The unchanged repo rate will further reduce the fixed deposit rates. This will be good news for depositors. Currently, RBI has a repo rate of 4 percent, which means banks can borrow more money at a lower cost. Therefore, banks pay low interest on fixed deposits mainly to the depositors as RBI provides funds at low interest.
Repo rate also helps in managing inflation. While low inflation is good for consumers, very low inflation also reflects low demand for goods and services. During high inflation, the cost increases, in case of low inflation, the prices of goods go up.
Also read in Hindi: RBI Policy: ब्याज दरों में नहीं होगा बदलावः शक्तिकांत दास