If you invest in fixed deposits (FD) or are thinking of taking a loan, then 5th April i.e. today can be important for you.
In fact, the results of the first Monetary Policy Committee (MPC) meeting of the new financial year of the Reserve Bank is about to be announced. Reserve Bank Governor Shaktikanta Das will announce the decisions of the MPC.
what are the expectations
It is expected that the Central Reserve Bank will once again keep the key policy rate repo unchanged and may maintain its focus on inflation control.
As concerns over economic growth rate subside, the focus is expected to remain on retail inflation.
Let us tell you that the Reserve Bank had last increased the repo rate in February 2023 and since then it has remained at 6.5 percent continuously.
There was no change in the repo rate in the last six bi-monthly policies. This means that no change is expected even for the 7th time.
Shock to hopes of relief
If the Reserve Bank does not change the repo rate, then it will be a blow for those who want to take home or auto loan.
There will be disappointing news for those who had hopes of relief on loan EMI. However, there is relief for FD investors.
In fact, due to the increase in repo rate, interest rates on fixed deposits in most public and private sector banks have reached 8%.
Many small finance banks are also offering around 9% interest rates on FD. The interest rate on FD for senior citizen investors had once reached 9.5%.
Due to continuously increasing interest, it has once again become an attractive investment option for many people.