RBI Monetary Policy Effect : Pulses and Milk Prices May Increase !

New Delhi: People hoping to reduce the loan interest rate are once again shocked. The Reserve Bank of India has announced no cuts in the repo rate on Thursday. This means that now there is little scope for loan interest rate and EMI to fall. With this, the Reserve Bank projected economic growth to be 6 percent in the next financial year.

Highlights of the sixth and final monetary policy review meeting of the Reserve Bank of Financial Year 2019-20 are as follows :

– Repo rate maintained at 5.15 percent.

– Economic growth rate projected to be 6 percent in 2020-21.

– Estimates of gross food inflation due to vegetables and pulses.

– Monetary approach liberalized to support economic growth rate, inflation is expected to remain high in the near future.

– Retail inflation is expected to rise to 6.5 percent in the January-March quarter.

– The arrival of the Coronavirus is expected to have a negative impact on tourist arrivals and global trade.

– The rationalization of personal income tax in the budget is expected to support domestic demand.

– Emphasis on the need to adjust interest rates for small savings schemes.

– The interest rates of loans given by banks to medium enterprises will be linked to the external standard rate from April 1.

– The debt restructuring deadline for GST-registered MSMEs was extended from March 2020 to December 2020.

– Revised guidelines will be issued for housing finance companies.

– The Reserve Bank will release the Digital Payments Index from time to time from July 2020 to know the scale of digitization of payments.

– The framework for self-regulation organization for digital payments will be released.

– All India Cheque truncation system will be started from September.

– Approval to extend the start of project loan up to one year in cases of delay in commencement of commercial operations due to reasons beyond the control of the promoters of commercial real estate projects.

– Estimates of crude oil prices to remain turbulent.

– The next meeting of the Monetary Policy Committee will be held on 31 March, 1 April and 3 April 2020.

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