RBI Monetary Policy: No respite to home, auto loan borrowers; RBI keeps interest rate unchanged at 4%

The EMIs on home and auto loans are unlikely to come down in the near term as the Reserve Bank of India on Friday kept the key policy rates unchanged in its bi-monthly Monetary Policy review.

The central bank announcing the outcome of its bi-monthly Monetary Policy rates on October 9 said that it has decided to keep the repo rate unchanged at 4 percent and the reverse repo rate at 3.35 percent. RBI will continue with its accomodative stance.

The three day RBI Monetary Policy Committee (MPC) meeting was held from October 7 to October 9. RBI had postponed the MPC meeting last week, which must have a quorum of four, as the appointment of independent members was delayed.

The RBI Monetary Policy announcement by the Central bank comes after the government filled the vacancies of three external members in the committee on Monday. The government on Monday appointed Ashima Goyal, Jayanth R. Varma and Shashanka Bhide as members of the Monetary Policy Committee of the RBI.

The last meeting of the Monetary Policy Committee was held from August 4 to 6, 2020. It was the 24th meeting of the rating-setting panel.

RBI Governor Shaktikanta Das said the Central Bank forecast a GDP contraction of 9.5 percent for FY2021, indicating a pick up in economic activity in Q3 and Q4. Das, infact speculated that GDP may turn positive in Q4.

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The India Wire Team

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