The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Friday kept the key interest rates unchanged and reduced the inflation target for the year 2021-22.
At the RBI meeting held on Friday, many raised the question of whether interest rates would be increased. Inflation is currently on the rise.
The price of vegetables has increased tremendously in the last few weeks.
As petrol, diesel and cooking gas prices rise, expectations and fears that prices will rise further are growing among the middle class.
In this situation, it was felt by many that the interest rate on bank deposit funds should be increased if the spending of the people was to be reduced to some extent. However, the Reserve Bank of India has not increased key interest rates.
As of now, the repo rate will remain at 4%, RBI Governor Shaktikant Das said.
It is noteworthy that today’s meeting is the eighth meeting to conclude without making any changes to important interest rates.
It is learned that five out of six directors of the Reserve Bank have said that there should be no change in interest rates and only one can opine that interest rates must be changed.
It is assumed that the inflation for the July-September quarter was lower than expected, and so no change has been made in interest rates!