Mumbai/New Delhi, 05 February (HS): The meeting of the Monetary Policy Committee (MPC) chaired by Reserve Bank of India (RBI) Governor Sanjay Malhotra started on Wednesday. The RBI Governor will announce the results of this meeting, which will run from 5 to 7 February, on 7 February. This time the Reserve Bank can cut the policy interest rate repo rate by 0.25 percent. Economic affairs experts say that the Monetary Policy Committee of RBI can cut the repo rate by 0.25 percent this time. RBI’s last three-day bi-monthly MPC meeting in the current financial year 2024-25 will run from 5 to 7 February. This will be the first MPC meeting chaired by Governor Sanjay Malhotra.

Experts have said that the Reserve Bank has kept the policy interest rate repo rate at 6.50 percent since February 2023. In such a situation, after increasing the limit of income tax exemption in the budget, the Reserve Bank will reduce the repo rate by 0.25 percent to 6.25 percent in this meeting. Finance Secretary Tuhin Kant Pandey said in a statement issued last week that this time is right to cut interest rates.

What is repo rate:

The repo rate is the interest rate at which the Reserve Bank gives loans to other banks. Due to the reduction in this rate, banks get cheap loans, which also reduces the rates of home loan, car loan and personal loan.

The RBI’s policy interest rate repo rate remains at 6.50 percent since February 2023. If the Reserve Bank cuts it by 0.25 percent this time, it will come down to 6.25 percent.

Hindusthan Samachar / Jun Sarkar