This week, the Reserve Bank of India's (RBI) monetary policy bi-monthly meeting is starting, in which the repo rate will be discussed. Experts believe that given the current circumstances, there will be no change in the rate. Amid concerns about retail inflation and the global crisis, this meeting can bring important results for the Indian economy. All eyes are on the results to be announced on October 9.

What does the repo rate mean?

The repo rate is the rate at which RBI lends money to banks. This rate affects economic activities. If this rate increases, then the loan becomes expensive. If this rate decreases, then the loan becomes cheaper.

Inflation concerns

Experts say that stagflation is still a matter of concern. This means that the prices of goods and services are rising. If inflation is high, people may reduce their purchasing power.

impact of the global crisis

The ongoing crisis in West Asia can also affect India. If the situation worsens there, the prices of crude oil and commodities may increase. This will increase the pressure on the Indian market.

New Monetary Policy Committee

The government has reconstituted the monetary policy committee of RBI. Three new members have been included in it. The new committee will discuss inflation and the economic situation in its first meeting.

rate setting status

RBI has kept the repo rate stable at 6.5 percent since February 2023. Experts believe that there will be no change in the rate this time. But there may be a possibility of a cut in December.

Opinion of experts

The chief economist of the Bank of Baroda said that there is no possibility of changing the rate due to inflation. He said that the recent Iran-Israel conflict has further complicated the situation.

Impact of GDP growth

ICRA's chief economist said that GDP growth may be lower than the previous estimate. This means that the country's economic growth may be slower than expected.

Real estate expectations

The real estate industry is also expecting a rate cut. Home buyers also have the same expectations. However experts say that RBI will probably keep the rates unchanged.

Results of the meeting

The results of this meeting will be announced on October 9. These results will be important for the Indian economy. People and businesses will pay attention to what steps the RBI takes in the future.