All eyes on RBI's new monetary policy, will EMI be cheaper?
The first major economic movement of the financial year 2025-26 is about to start. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) is going to start its three-day Monetary Policy Committee (MPC) meeting from Monday, april 7. And its final decision will come out on Wednesday, april 9 at 10 am. Now you must be wondering what is special for the common man in this? Let us understand in simple language what is going to be beneficial for you from this meeting.
Will your loans become cheaper?
In february 2025, RBI took a big step, cutting the repo rate by 0.25 percent, that is, the repo rate was reduced from 6.5 percent to 6.25 percent. This happened for the first time after about five years. In such a situation, it is now expected that this time also RBI can cut another 0.25 percent. This means that taking a loan can become cheaper. If explained in simple language, then 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 whole year.
What is repo rate?
If understood in simple language, 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, due to which EMI decreases and spending in the market increases.
Inflation is under control, now it is the turn of growth
RBI's inflation control target is between 2 percent to 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.
How will india benefit from the world developments?
In fact, US President donald trump has announced to impose heavy tariffs on 60 countries, which also includes india and China. These tariffs will range from 11% to 49% and will be implemented from 9 April. 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 space can be created for indian exporters there. That means our exporters can get a new window of opportunity.
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