What will be the effect on the interest rates of Home-Car Loan, RBI will announce monetary policy review in a while
The Reserve Bank will present its bi-monthly review of monetary policy on Wednesday. In this, he cannot make any change in the prime interest rates. Because there is concern on the economic front regarding the new strain of Coronavirus, Omicron. In October, for the 8th time, the central bank did not change the key interest rates.
Meanwhile, SBI economists have asked the Reserve Bank to avoid a hike in the reverse repo rate. SBI economists say that the central bank should not take steps to normalize the liquidity situation for the time being and should give more time for the revival of the economy.
Economists say keeping the reverse repo rate unchanged will give more time to further strengthen the current economic revival. SBI Research said in a note that the Reserve Bank of India (RBI) is yet to try to infuse excess liquidity through other measures. The note further said that the use of the reverse repo channel should not be limited to the announcement of monetary policy.
Interest rates will not change: SBI
SBI Group Chief Economic Advisor Soumya Kanti Ghosh said in the note that the situation is still improving and reverse repo rates should be kept unchanged in the next policy announcement on December 8.
Repo rate at 4 percent
Let us tell you that in October, RBI had retained the repo rate at 4 percent. While the reverse repo rate was kept at 3.35 percent. Shaktikanta Das had said after the last meeting that the supply situation has improved with the easing of restrictions due to the pandemic and improvement in capacity. He lowered the CPI inflation estimate from 5.7 percent to 5.3 percent. RBI governor had said that CPI inflation is estimated to be 5.3 percent in FY 2022.
