Highlights
- There is no possibility of any change in interest rates in the meeting of the Reserve Bank’s Monetary Policy Setting Committee (MPC) to be held this week.
- Experts believe that the reason for this could be the sudden spread of uncertainty in the markets around the world due to Omicron.
- The MPC headed by Reserve Bank Governor Shaktikanta Das is scheduled to meet on December 6-8 to review the monetary situation.
RBI Monetary Policy: The Reserve Bank of India may maintain the status quo on the interest rates front in its upcoming policy review amid concerns about the new nature of the corona virus, Omicron. Experts say that there is no possibility of any change in interest rates in the meeting of the Reserve Bank’s Monetary Policy Setting Committee (MPC) to be held this week. The reason for this is the sudden spread of uncertainty in the markets around the world due to Omicron. In such a situation, the Monetary Committee may adopt a stance to wait a bit for changes in policy interest rates.
The MPC, headed by Reserve Bank Governor Shaktikanta Das, is scheduled to meet on December 6-8 to review the monetary situation. Information about the decisions to be taken in this will be given on December 8. The central bank had kept the policy rates unchanged in October last as well.
Omicron is spreading fast
The new variant of Corona, Omicron, is spreading rapidly. In Maharashtra, 7 more people have been confirmed infected with Omicron. In this way, the total number of people infected with Omicron variants here has increased to 8. Apart from Maharashtra, cases related to Omicron have also been reported in Karnataka, Gujarat and Delhi. It has also infected fully vaccinated people. This variant has been named B.1.1.529.
Those doing small business will get loan in a pinch, know what the government is preparing!
According to a research report by SBI, the discussion about the decision to increase the reverse repo rate in the MPC meeting is still immature. Apart from this, the central bank would not like to take unconventional steps like raising the reverse repo rate only in the MPC.
A report by Kotak Economic Research says that amid the uncertainty over the new nature of the corona virus, the Reserve Bank will probably wait for the situation to become clear before deciding on changes in policy rates. However, it retained its estimate of an increase in the reverse repo rate in the next monetary review to be held in February.
Asset advisory firm Anarock has also said that the RBI may not decide on increasing the reverse repo rate in the current situation. Anarock Chairman Anuj Puri said, “In such a situation, home buyers will continue to get home loans at affordable rates for some more time.”
If the Reserve Bank keeps policy interest rates unchanged on Wednesday, it will be the ninth consecutive time that there will be no change in rates. The Reserve Bank last changed the rates on May 22, 2020.
The central government has asked the Reserve Bank to ensure that retail inflation based on the consumer price index (CPI) remains at 4 per cent, with room for volatility of 2 per cent. The central bank had kept key interest rates unchanged in August last on inflation concerns.
Home Loan Rates: These 10 banks are offering the cheapest home loan, see the complete list
.