RBI monetary policy: Shaktikanta Das-led MPC keeps repo rate steady at 6.50%. Predicts 6.5% GDP growth in FY24

 
The RBI's decision to keep the repo rate unchanged at 6.50% is likely to have a mixed impact on the common people. On the one hand, it will help to keep inflation in check, which is currently at a 6-year high. This will be good for consumers, as they will not have to pay as much for essential goods and services. On the other hand, it will also mean that interest rates on loans will remain high, which could make it more expensive for people to buy homes and cars.

Overall, the RBI's decision is a cautious one. It is trying to balance the need to control inflation with the need to support economic growth. The decision is likely to be welcomed by businesses, as it will give them some breathing space to recover from the pandemic. However, it could be a disappointment to consumers, who were hoping for a rate cut.

Here are some specific implications of the RBI's decision for the common people:

  • Home loan borrowers: Interest rates on home loans are likely to remain high, which could make it more expensive to buy a home.
  • Car loan borrowers: Interest rates on car loans are also likely to remain high, which could make it more expensive to buy a car.
  • Small businesses: The RBI's decision could help to support small businesses, as it will make it cheaper for them to borrow money.
  • Consumers: The RBI's decision is likely to have a neutral impact on consumers, as it will help to keep inflation in check, but it will also mean that interest rates on loans will remain high.

The RBI will next review its monetary policy in October 2023. It will be interesting to see if the central bank decides to change its stance at that time.

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