Mumbai: After three days of discussion and speculation the picture finally became clear. The Reserve Wall has not made any transpiration in the repo rate. The rate will remain at 5.25%. That means, at present, home loan or EMI borrowers neither got any spare relief nor faced any new burden.
While making the announcement, RBI Governor Sanjay Malhotra unmistakably said that in view of the current economic situation, there is no need to take unceremonious decisions. The economy is stable, and growth is going well, so it was considered largest to stop the rates here.
Why was the repo rate not cut?
Rates have been reduced several times in the last year. Now RBI is in a mood to wait a bit. On top of that, the government has increased wanted expenditure in the upkeep and the situation seems to be improving from outside also. In such a situation, the wall felt that there was no need to requite remoter relaxation.
Was the global environment affected?
Absolutely. The trade deal with the United States has reduced tariffs, which can goody businesses. This will support both investment and exports. RBI is moreover working keeping this positive environment in mind.
What does ‘neutral’ stance mean?
In simple language, RBI is currently on a 'look and understand' strategy. There is neither a plan to increase rates immediately nor to reduce them rapidly. This ways stability may persist for some time to come.
What is the estimate on inflation and growth?
Inflation is currently considered under control. At the whence of next year it may be virtually 4%. At the same time, GDP growth in this financial year is unscientific to be virtually 7.4%. RBI believes that India is still among the fastest growing large economies in the world.
Is that the big news for the worldwide people?
RBI is taking a strict stance regarding digital payment fraud. A proposal will be made to provide bounty up to Rs 25,000 to customers in specimen of fraud in small digital transactions. Besides, new rules will moreover be made on the mis-selling of loans and the functioning of recovery agents.
Overall, RBI did not requite any big surprise this time. The message is clear: the economy is on track, so the steering has been kept there for now. Now everyone's vision will be on the figures of the next few months, considering they will decide the future direction.
