RBI will give the gift of cheap loans in April!
The possibility of reduction in interest rates has increased in the RBI's Monetary Policy Committee meeting to be held in the second week of April. The retail inflation rate figures declared in the month of february have slipped below the target of 4 percent. On march 12, the Ministry of Statistics declared the retail inflation rate figures, according to which the retail inflation rate in the month of february has fallen to 3.61 percent, which was 4.3 percent in January.
In the second week of april, from april 7-9, the Monetary Policy Committee will meet under the chairmanship of RBI governor Sanjay Malhotra and in this meeting, people troubled by expensive EMIs can once again get relief. Earlier on february 7, RBI had reduced the repo rate from 6.50 percent to 6.25 percent. And now there is every possibility that when the RBI's Monetary Policy Committee meeting will be held in the month of april at the start of the new financial year 2025-26, then taking cognizance of the big drop in retail inflation, RBI can again decide to cut the repo rate.
There has been a huge decline in food inflation in the month of February. Food inflation has come down to 3.75 percent in february, which was 5.97 percent in January. Food inflation had been a cause of concern for RBI for a long time. Inflation has come down due to the fall in vegetable prices and inflation is expected to come down further due to better Rabi crops. According to experts, RBI MPC has cut the repo rate by 25 basis points in the month of February. And now after the fall in inflation rate, the process of cutting the repo rate by RBI may continue in the upcoming Monetary Policy Committee meeting so that consumption can be promoted.
CPI inflation has reached a 4-month low. This has happened due to the reduction in the prices of food items. Consumption in the economy can be promoted only by controlling food inflation. Retail inflation being close to 4 percent is correct in view of the policy point because due to this the possibility of reduction in interest rates in april is open. Announcing the monetary policy of RBI in february, governor Sanjay Malhotra had said that after the inflation rate went above the tolerance band in october 2024, a decrease has been seen in the months of november and December.
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