The RBI has announced monetary policy, no concessions on EMIs, no change in rates

Reserve Bank Governor Shakikanta Das is holding a press conference on the new monetary policy. Let us tell you that the three-day meeting of the Monetary Policy Committee, chaired by the Governor of the Reserve Bank, began on 4 August. The results of the committee meeting are being announced today. The RBI did not change the rates. The repo rate is kept at four percent. The reverse repo rate has been fixed at 3.35. Although he did not say anything about loan or EMI discount. This means that EMI discounts will not be available on loans after this month. Its term is set to end on August 31. Bank officials are protesting its expansion over the possibility of its misuse.

Reserve Bank Governor Shakikanta Das is holding a press conference on the new monetary policy. Let us tell you that the three-day meeting of the Monetary Policy Committee, chaired by the Governor of the Reserve Bank, began on 4 August. The results of the committee meeting are being announced today. The RBI did not change the rates. The repo rate is kept at four percent. The reverse repo rate has been fixed at 3.35. Although he did not say anything about loan or EMI discount. This means that EMI discounts will not be available on loans after this month. Its term is set to end on August 31. Bank officials are protesting its expansion over the possibility of its misuse.

Read more: Reverse repo rate cut: What is reverse repo rate and how does its reduction affect the general public?

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Governor Shaktikant Das said the MPC had taken the decision unanimously. He said the recovery in the Indian economy has begun. Foreign exchange reserves are growing rapidly. However, the world economy has deteriorated sharply. From January to June, the economies of the larger economies were extremely poor.

Inflation is expected to rise in the second half

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RBI expects inflation to rise in the second half. Food prices may rise. RBI Governor Das said the supply chain constraints remained unbroken, putting pressure on inflation in various sectors. He said the annual inflation rate in June this year had risen to 6.09 per cent from 5.84 per cent in March. This is higher than the RBI’s medium-term target. The RBI’s target is 2-6 percent.

GDP growth is expected to be negative

He said GDP growth is expected to be negative in FY1 growth. Inflation is on the way to economic recovery. Global economic activity remains weak, with the emergence of the Covid-19 case weakening the initial signs of recovery. After a meeting of the governor’s monetary policy committee, Shaktikant Das said the RBI’s position would remain moderate. Banks will be able to lend up to 90 per cent on gold jewelery. RBI Governor Das said an additional cash benefit of Rs 10,000 crore would be provided by NHB, NABARD. The RBI allowed donors to facilitate the restructuring of companies and beneficiaries to alleviate the effects of COVID-19.

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Read more: 25,000 tons of gold is deposited in the homes of ordinary people

The Reserve Bank has been taking proactive steps for some time to limit the impact of the corona virus epidemic on the economy and the lockdowns that have been effective in preventing it. Due to the rapidly changing macroeconomic situation and the deteriorating situation of growth, the Reserve Bank’s rate-fixing committee had to meet in March and before that in May. At the same time, Finance Minister Nirmala Sitharaman said last week that our focus is on restructuring. The finance ministry is in talks with the RBI. Apart from this, the central bank may issue guidelines for deferment of loan repayment.

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It is difficult to start paying again: Raghuram Rajan

At the same time, former Reserve Bank governor Raghuram Rajan is warning that banks will have to rescind the moratorium immediately. Citing the example of Andhra Pradesh microfinance, he said that if the banks did not stop this facility, a similar crisis could erupt again in a few days. Rajan said, “Once you tell people that there is no need to pay EMI, then it becomes difficult for them to start the payment habit again, because they don’t save. It happens when they don’t have any funds to pay more.”

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