RBI मॉनेटरी पॉलिसी कमेटी की मीटिंग आज से: इस बार भी रेपो रेट में बदलाव की उम्मीद नहीं, अभी ये 6.50% पर है

The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) will begin today (August 6) i.e. Tuesday. This meeting will continue till August 8. This will be the third meeting of the financial year 2024-25.

According to experts, there is no hope of change in RBI repo rate i.e. interest rate in this meeting. Currently, the repo rate remains at 6.50%. RBI had earlier not increased the interest rates in the meeting held in June.

In the financial year 2022-23, the repo rate was increased by 2.50% in 6 times
Monetary policy meeting is held every two months. The first meeting of the financial year 2022-23 was held in April-2022. Then RBI kept the repo rate stable at 4%, but RBI called an emergency meeting on 2 and 3 May and increased the repo rate by 0.40% to 4.40%.

This change in the repo rate happened after 22 May 2020. After this, the repo rate was increased by 0.50% in the meeting held from 6 to 8 June. This increased the repo rate from 4.40% to 4.90%. Then in August it was increased by 0.50%, due to which it reached 5.40%.

In September, interest rates rose to 5.90%. Then in December, interest rates reached 6.25%. After this, the last monetary policy meeting of the financial year 2022-23 was held in February, in which interest rates were increased from 6.25% to 6.50%.

Why does RBI increase or decrease the repo rate?
RBI has a powerful tool to fight inflation in the form of repo rate. When inflation is very high, RBI tries to reduce the money flow in the economy by increasing the repo rate. If the repo rate is high, the loan that banks get from RBI will be expensive. In turn, banks will make loans expensive for their customers. This will reduce the money flow in the economy. If the money flow decreases, demand will decrease and inflation will decrease.

Similarly, when the economy goes through a bad phase, there is a need to increase the money flow for recovery. In such a situation, RBI reduces the repo rate. Due to this, the loan that banks get from RBI becomes cheaper and customers also get loans at a cheaper rate. Let us understand this with an example. During the Corona period, when the economic activity came to a standstill, there was a decrease in demand. In such a situation, RBI increased the money flow in the economy by reducing the interest rates.

What happens when the reverse repo rate increases or decreases?
Reverse repo rate is the rate at which RBI pays interest to banks for keeping money. When RBI has to reduce liquidity from the market, it increases the reverse repo rate. Banks take advantage of this by receiving interest for their holding with RBI. During high inflation in the economy, RBI increases the reverse repo rate. This reduces the funds with banks to give loans to customers.