RBI Repo Rate Prediction: The budget of financial year 2025-26 has arrived. Now everyone’s eyes are on the Reserve Bank. Its monetary policy committee (MPC) will meet between 5-7 February. Since the focus of the budget was on increasing consumption in the country, it is expected that the Reserve Bank will also help the government in this matter by cutting interest rates. To increase the pace of economic development in the country, it is considered necessary to increase consumption.
There is a big relief in income tax in the budget. Finance Minister Nirmala Sitharaman has freed the income up to Rs 12 lakh annually. So far this limit of discount in the new system was Rs 7 lakh.
Anand Rathi Group co-founder and vice-president Pradeep Gupta said that consumption is expected to increase with income tax exemption. Especially in the middle and high-middle income groups, discretionary expenditure may increase.
Chhattisgarh it raid: evidence of disturbances of 10,00,00,00,000… will be a big disclosure
2.5 lakh crore rupees expected of dividend
Economic experts have analyzed the budget documents and estimated that the government may get a dividend of up to Rs 2.56 lakh crore from RBI and public sector banks. In the last financial year 2024-25, the government got a dividend of a total of Rs 2.30 lakh crore.
This year the estimated amount may be even higher. According to experts, the fall in the rupee and the earnings from foreign exchange assets can be the main reason for this increase.
Grammy Awards 2025: Chandrika Tandon awards for the album ‘Triveni’, see the full list of Winners here…
4% relief from inflation can be relieved
Bajoria believes that this year, the inflation rate can come down to around 4% according to retail prices. In such a situation, the Reserve Bank should not have any problem in reducing policy rates.
At the Society General, India’s economist Kunal Kundu said that the new Governor of the Reserve Bank Sanjay Malhotra is reversed with the previous Governor Shaktikanta Das. Their policies are towards supporting the economy rather than apprehensive about inflation. If needed, he will not back down from reducing the repo rate.
Mamta Kulkarni made a big statement about Pandit Dhirendra Shastri, said- as much as his age, more than my austerity, who I am asking my guru?
Experts hope
If the Reserve Bank reduces interest rates a bit, then the burden of EMI on the common people will be reduced. This will save extra. Economist of India’s Economist (India and Asia) Rahul Bajoria and Elra Securities, Garima Kapoor, Bank of America Securities i.e. Bofa’s Economist (India and Asia), hopes that the RBI will reduce the repo rate by 0.25% to 6.25% in February.
Later, the repo rate can be brought to 5.50% by the end of 2025 by cutting it by 0.75% in a phased manner. Also, the RBI can increase cash in the banking system by cutting 0.50% in the cash reserve ratio (CRR) or purchasing bonds from the open market.