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RBI Keeps Key Rate Steady, How This Will Affect Your Loan EMIs

The Reserve Bank of India (RBI) on Thursday announced its Monetary Policy decision, keeping the repo rate unchanged at 6.5 per cent for the ninth consecutive time.

The decision was made by the Monetary Policy Committee (MPC) during its third bi-monthly policy meeting for the financial year 2024-25, held from Tuesday to Thursday.

RBI Governor Shaktikanta Das cited stable inflation levels as a key factor in the decision. Retail inflation rose to 5.08 per cent year-on-year in June due to increasing food prices but has remained below 5 per cent since March and under 6 per cent since September last year. The CPI-based inflation has been within the RBI’s tolerance range of 2-6 per cent for the past ten months.

How this affects your loan EMIs

Here is a breakdown of how this decision will impact various types of loans:

The RBI decision ensures borrowing costs do not rise, which can encourage spending and investment.

Key takeaways from the policy meeting:



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