Will the home-car loan be cheaper once again? These estimates are setting experts before RBI repo rate
reserve Bank of India (RBI), in its last three monetary policy, the repo rate has been reduced to give great relief to the common people. All types of loans including home, car loan have become cheap due to repo rate cuts. In such a situation, what is the estimate of monetary policy on Wednesday? Can the RBI once again give a gift of repo rate deduction. Expert says that the Reserve Bank of India (RBI) can keep the major short -term borrowing rate in its upcoming bilateral monetary policy on Wednesday at 5.5 percent after three consecutive cuts. However, in view of the increasing uncertainties of fees and low inflation trends in the US, there are adverse conditions for economic growth in the near future.
Expect a cut also
Some experts on the other hand believe that the central bank may make another cut in rates because challenges for growth approach are higher than potential inflation risks. The central bank has already cut the short -term lending rate (repo) three times in a row, which has increased to one percent in total. RBI Governor Sanjay Malhotra will declare the next bilateral policy rate on Wednesday (August 6), presiding over the six -member rate -posting committee – Monetary Policy Committee (MPC) -. The three -day meeting of MPC will begin on Monday. Madan Sabnavis, chief economist at Bank of Baroda, said the loan policy would not be based on low inflation and 25 percent of the recent developments of US fee in June. He said that the policy would have already incorporated 26 percent fee in June, which was postponed in April. Sabanavis said the loan policy would not be based on low inflation in June and 25 percent of the US fee developments. He said that in June, the policy would have already buffer the 26 percent fee, which was the postponed rate in April.
Possibility of decreasing inflation estimate
Sabanavis said, “Therefore, the fee cannot change the approach about the increase in itself. However it will be interesting to see how the RBI sees this number. Inflation estimates for the year may have a slight decrease of 0.1–0.2 percent, ie 3.5-3.6 percent instead of 3.7 percent.” However, the cost of crude oil will also be considered at this time. He said, “Therefore, we do not expect any change in stance or policy rate this time. With some relief on a strong growth front, the stance will be more cautious.” Carey Ratings said that the RBI had already started cutting interest rates, expecting a reduction in inflation.
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