RBI decides to maintain repo rate at 6.50%
In a major announcement today, the Reserve Bank of India (RBI) has decided to maintain the repo rate at 6.50%. This decision was made by RBI Governor Shaktikanta Das, who announced that there will be no changes to the repo rate. This decision is expected to impact both FD and loan interest rates.
Impact on FD and loan interest rates
With the repo rate remaining unchanged, it is expected that FD interest rates may decrease sharply. Similarly, loan interest rates may also decrease, making it easier for borrowers to access credit.
History of repo rate in Modi government
The repo rate has been a key area of focus in the Modi government. When the Modi government took office, the repo rate was at 8%, the highest it has been during this tenure. Since then, the rate has fluctuated, but has now remained at 6.50% for some time.
Journey of repo rate
The repo rate has been on a journey of ups and downs, with significant changes in recent years. In September 2022, the repo rate was at 5.90%, while in May 2022 it was at -5.40%. Today, the rate remains at 6.50%.
Understanding monetary policy terms
To understand the impact of the repo rate, it is important to understand key terms in monetary policy. The repo rate is the rate at which RBI lends to banks, while the reverse repo rate is the rate at which banks get interest on the money deposited with RBI on their behalf. The cash reserve ratio (CRR) is the percentage of cash that banks must keep with the RBI, while the statutory liquidity ratio (SLR) is the rate at which banks keep their money with the government.
English summary
The RBI has maintained the repo rate at 6.50%. This decision is expected to impact FD and loan interest rates. The history of the repo rate in the Modi government shows that it has fluctuated significantly, but has now remained at 6.50% for some time. Understanding key terms in monetary policy is crucial to understanding the impact of changes in the repo rate.
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