New Delhi. Discussion has begun today on whether bank loans will become more expensive on June 5 or the EMI of home loans will decrease. The RBI's Monetary Policy Committee (MPC) meeting began on June 3, and RBI Governor Sanjay Malhotra will announce the monetary policy on Friday, June 5. Before this policy, speculation is rife that the RBI may pause its rate cuts because the risk of inflation has increased due to the war between Iran and the United States.
On the other hand, it is also being said that the Reserve Bank may increase interest rates instead of cutting them. However, the RBI's decision will be announced on June 5 at 10 am. Earlier, State Bank of India Chairman Chella Srinivasulu Setty expressed his opinion on the RBI policy.
Will there be a pause in rate cuts?
According to a Moneycontrol report, the SBI chairman said that he is in favor of keeping interest rates unchanged, in line with the emerging consensus across various market segments. This means that interest rates will neither increase nor decrease. According to Setty, given the current economic growth and inflation situation, a pause in the repo rate is appropriate.
He said, "This pause will be primarily based on the growth-inflation situation. The RBI has estimated a growth rate of 6.9%, but according to our assessment, the growth rate could fall to 6.6%. Inflation is expected to remain around 4.6%-4.7%. Given these conditions, a pause in the repo rate by the MPC at this time would be a prudent decision."
