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Interest Rate Cut: The possibility of reduction in interest rates has intensified in the RBI Monetary Policy Committee meeting to be held in the second week of April. The statistics of retail inflation in the month of February have slipped down from the 4 percent target. On March 12, the Ministry of Statistics declared retail inflation figures, according to which the retail inflation rate has fallen to 3.61 per cent in February, which was 4.3 per cent in January.
In the second week of April, there will be a meeting of the Monetary Policy Committee under the chairmanship of RBI Governor Sanjay Malhotra from 7-9 April and once again the expensive EMIs can get relief from the expensive EMI. Earlier on 7 February, the RBI had reduced the repo rate from 6.50 percent to 6.25 percent. And now there is a possibility that as soon as the new FY 2025-26 starts, when the RBI Monetary Policy Committee will meet in April, the RBI can decide to cut the repo rate again, taking cognizance of the big fall in retail inflation.
There has been a huge decline in food inflation in the month of February. In February, the food inflation has come down to 3.75 percent, which was 5.97 percent in January. Food inflation had been a cause of concern for RBI for a long time. There has been a decrease in inflation due to the fall in the prices of vegetables and due to better rabi crops, there is a possibility of further decrease in inflation. According to experts, RBI MPC has cut the repo rate by 25 basis points in February. And now in the meeting of the Monetary Policy Committee coming after the fall in inflation rate, the rote cut in the repo rate can continue from the RBI so that consumption and consumption can be promoted.
CPI inflation has arrived at a 4 -month low. This has happened due to a decrease in the prices of food items. Consumption in the economy can be promoted only by controlling food inflation. Staying close to 4 per cent of retail inflation is correct in view of the policy point as the possibility of cutting interest rates in April is open. Announcing the Monetary Policy of RBI in February, Governor Sanjay Malhotra had said that, there has been a shortage in the months of November and December after going over the inflation band in October 2024.
Food inflation pressure can be reduced due to the production of better kharif crops, the price of vegetables in the cold and the possibility of spectacular rabi crops in the coming days. Keeping all these things in mind, 4.8 percent inflation has been estimated in the current financial year 2024-25, while in the fourth quarter, 4.4 percent inflation may remain.
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