RBI monetary policy October 2021: no respite for mortgage and auto loan borrowers; RBI keeps interest unchanged at 4% | Personal finance news
New Delhi: Home and auto loan borrowers must continue with their current EMIs which are not expected to decline in the near term, as the Reserve Bank of India kept key rates unchanged in its bimonthly monetary policy review on Friday.
The central bank announcing the outcome of its bimonthly monetary policy rates on Oct. 8 said it had decided to keep the repo rate unchanged at 4% and the repo rate at 3.35%. Repo is the rate at which RBI lends funds to commercial banks when needed. It is a tool that the central bank uses to control inflation. The reverse repo rate is the rate at which the RBI borrows from banks.
The MPC has kept the policy rate unchanged in its last seven reviews. This is the eighth time in a row that MPC has decided to keep the key rate unchanged. The RBI last revised its key rate on May 22, 2020, in a non-political cycle to revive demand by lowering interest rates to an all-time low.
The 6-member MPC voted unanimously to keep interest rates unchanged and decided to maintain its accommodative stance for as long as needed to support growth and keep inflation within US limits. goal.
The RBI has projected CPI inflation at 5.7% in 2021-2022 – 5.9% in the second quarter, 5.3% in the third and 5.8% in the fourth quarter of the fiscal year, with globally balanced risks. CPI inflation for the first quarter of 2022-2023 is projected at 5.1%.
CPI inflation was 5.3 percent in August. Inflation data for September is expected to be released on October 12.