Will EMI for home loans be reduced? RBI's key decision..!?

The 2-day meeting of the Reserve bank of India's Monetary Policy Committee (MPC) is scheduled to be held on december 4-6. On the one hand, the Prime Minister's office is going to make an important decision on the extension of the term of RBI governor Shaktikanta Das. For the first time in the last 30 months, the RBI-led Monetary Policy Committee is going to focus on increasing economic growth rather than controlling inflation in the country. This is seen as a very important change. India's economic growth has been slowing for the last two quarters. This is the slowest growth recorded in the last two years. The slowdown has raised serious questions about India's ability to remain the world's fastest-growing major economy.
While it is said that policy-based measures will be needed to increase economic growth and achieve the annual growth target of 8%, this is expected to be done through this monetary policy meeting. It is normal for economic growth to slow down in one quarter due to temporary reasons, which can happen in most countries, but a continuous decline in the second quarter is worrying. This is what is happening in india now.This slowdown continues and the economic growth forecast for the third quarter is also not promising. Thus, it is very doubtful whether the RBI will achieve the 7.2% growth forecast for this financial year.

Economic uncertainty is increasing globally. If the new trump administration in the united states comes to power, there will be a change in international trade policies as it is ready to impose large tariffs on the three countries. This may directly and indirectly complicate India's economic growth path further. Due to this, demands to reduce interest rates are now stronger than usual. Key government figures, including Union Finance minister Nirmala Sitharaman and Commerce minister Piyush Goyal, have been continuously emphasizing reducing interest rates and controlling inflation. However, the market is predicting that the RBI, which is struggling with rising prices, is unlikely to cut interest rates on december 6.
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Sowmiya Sriram

03/12/2024 09:53 AM