Reserve bank of india

The Reserve Bank of India has decided not to cut the policy rate in the MPC meeting for the second consecutive time, giving a big blow to the common people. 5 out of 6 members of RBI voted not to cut the repo rate. Currently, the RBI repo rate is 5.50 percent. Earlier in the month of August, there was no change in the policy rate from the RBI. By the way, many economists hoped that RBI would cut the repo rate by 0.25 percent, giving surprise to all. But this did not happen.

There were many reasons for the possible decline in growth due to inflation and tariffs before the RBI, due to which the repo rate could have been cut, but experts say that the decision not to cut the repo rate is quite strategic. There is also the reason for this. There is no benefit in this financial year in growth due to rate cut. The speech of the RBI governor has indicated that the policy may be cut in the policy in the month of December. RBI MPC has cut the repo rate by 1 percent in the current year. In February and April, there was a cut of 25–25 basis points, while in the month of June, the rate of 50 basis points was cut.

Decorated inflation was reduced

By the way, there has been a big cut in inflation estimates in the MPC of RBI. Giving information, the RBI Governor said that in the current financial year, inflation estimates have been reduced by 0.50 percent. After which the inflation of the country has been estimated at 2.6 percent. In the August meeting, this estimate was made 3.1 percent, which was 3.7 percent earlier. This means that RBI is continuously cutting the estimate of inflation.