Cheap EMI, loan will be available at low interest rate!
people paying EMI can be given relief by RBI. In the monetary review meeting from 7 to 9 april, RBI can take policy decisions and cut the interest rate by up to 0.25 percent. At present, the central bank has the scope to cut the interest rate due to reduction in inflation. However, the tariff imposed by the US has definitely posed a challenge to maintain the pace of the economy. In this situation, incentives are needed to maintain the economic pace on the domestic front.
Hope of relief
Earlier, in february 2025, RBI had cut the repo rate by 0.25 percent. The repo rate was reduced from 6.5 percent to 6.25 percent. This happened for the first time after about 5 years. In such a situation, it is now expected that this time also RBI can cut another 0.25 percent. Taking a loan can become cheaper. To put it simply, there can be some relief in EMI. According to the report of Financial Express, institutions like bank of Baroda say that a reduction of 0.75 percent can be seen in the entire year.
To put it simply, the repo rate is the rate at which RBI gives loans to banks. When this rate decreases, banks also start giving loans to people at cheaper rates, which reduces EMI and increases spending in the market. RBI's inflation control target is between 2 percent and 6 percent and currently india remains in this band. This means that now RBI's focus will be on boosting growth. This can be a relief news for small businesses, startups and the general public.
Tariffs pose a challenge
US President donald trump has announced to impose heavy tariffs on 60 countries, including india and China. These tariffs will range from 11% to 49% and will come into effect from april 9. On the same day, RBI will announce its policy. Now this can become an opportunity for India. If countries like China, Vietnam, bangladesh become expensive in the US market, then there can be a place for indian exporters there. That is, our exporters can get a new window of opportunity. Actually, in such a situation, the question is how will RBI maintain balance. That is, on one hand there are domestic development needs, on the other hand, the changing environment of global trade. Now in such a situation, the big question is whether there will be a rate cut again?
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