Wed Oct 09 03:49:46 UTC 2024: ## RBI to Decide Fate of Home, Auto, Personal Loans: Will Repo Rate Rise or Fall?

**Mumbai, India** – The Reserve Bank of India (RBI) is expected to make a major announcement regarding the Repo Rate today, impacting the cost of home, auto, and personal loans for millions of borrowers. The central bank’s Monetary Policy Committee (MPC) will reveal its decision after a two-day meeting, which concludes today.

The Repo Rate, which has remained stable at 6.5% for the past nine reviews, has been a key factor in determining loan interest rates. A decrease in the Repo Rate would lead to lower EMIs for borrowers, while an increase would push up loan repayment costs.

The MPC’s decision will be closely watched as several countries, including the US, have recently lowered their interest rates. Experts are divided on whether the RBI will follow suit or maintain the current Repo Rate.

**Inflation, a key consideration**

The RBI has been tasked with controlling inflation, which has recently dipped below its target range. The central bank has aggressively raised the Repo Rate since May 2022, a total increase of 2.5%, to curb rising prices. While inflation has eased, some experts believe that the RBI may choose to keep the Repo Rate unchanged to ensure its stability.

A Bloomberg survey of 13 economists found that only three anticipate a cut in the Repo Rate, with the majority expecting it to remain at 6.5%.

**Impact on the stock market**

The RBI’s decision will likely impact the Indian stock market, which has been closely watching the central bank’s moves. Tuesday’s positive market performance, fueled by encouraging election results in Haryana and Jammu & Kashmir, could be further influenced by the MPC’s announcement.

The stock market will be closely watching the announcement as it has the potential to affect the overall economic sentiment.

The RBI’s MPC meeting is a critical event for the Indian economy, impacting both borrowers and investors. The central bank’s decision on the Repo Rate will determine the future trajectory of loan costs and financial markets, shaping the economic landscape for the coming months.

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