Even after the inflation rate has crossed 6 percent, the common man may get relief in December. In fact, the possibility of a major increase in interest rates in the next monetary policy meeting of the Reserve Bank of India (RBI) has reduced. SBI Research has estimated in its latest report that in December, RBI may increase the repo rate by only 0.25 percent i.e. 25 basis points instead of 0.50 percent. This can reduce the possibility of a big shock on the EMI of home loan, car loan and other loans.
Retail inflation rate has increased to 6.09 percent in October. यह पिछले दो साल का सबसे ऊंचा स्तर है. For the first time under the new CPI series, the inflation rate has gone above the upper limit of 6 percent set by RBI. In such a situation, it was believed that to control inflation, the Central Bank could increase interest rates by up to 0.50 percent in December.
SBI Research has changed its estimate regarding December interest rates in its latest Ecowrap report released on November 12. Earlier the research team feared that RBI might increase the repo rate by 50 basis points. Now he believes that the possibility of an increase of 25 basis points is more.
The report said that recent domestic and international developments have strengthened the path for limited increase in interest rates for RBI. SBI Research wrote about the change in its opinion, “When the facts change, I change my opinion. What do you do?”
According to SBI Research, due to improvement in the condition of rupee, increase in foreign investment and softening of crude oil prices, RBI may not need to increase interest rates too much. Apart from this, the expectation of softening of bond yields in the world can also influence this decision.
Earlier in December, SBI Research had given two possibilities regarding interest rates. First, RBI should directly increase the repo rate by 50 basis points. Secondly, along with the increase in repo rate by 25 basis points, the interest rate corridor should be further tightened by 25 basis points. However, now according to the report, an increase of 25 basis points in the December MPC meeting has the upper hand. This means that despite rising inflation, common people may not have to face a huge increase in interest rates.
Source: ndtv.in
