The central bank also retained the stance of the monetary policy as ‘withdrawal of accommodation’ in a 5:1 majority decision. The central bank has retained the headline inflation forecast at 5.4 per cent for the current fiscal as uncertainty persists on the food prices front.
Fixed deposit investors should be prepared for a downward trend in interest rates. The 10-year government bond yield has already fallen and is expected to continue decreasing. Whenever interest rate starts falling, the short to medium-term FD rates will be affected first, so investors should consider booking their FDs soon.
RBI MPC announcements today: A 0.5% drop in your home loan interest rate can save you Rs 3.83 lakh if the interest rate on your Rs 50-lakh loan for 20 years comes down from 9% to 8.5%. This will give much needed relief to old home loan borrowers who have seen their interest rate rise sharply within the last 3 years.
The RBI Monetary Policy outcome could create minor volatility in the market on February 8, according to analysts. And, hint of a rate cut in near future from Governor Shaktikanta Das may set off a fresh rally in equities
New Delhi: As widely anticipated by financial markets and policy observers, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) opted to maintain the policy repo rate at its current level of 6.50 percent during its meeting on Thursday.