After GST Cut, Will RBI Gift a Repo Rate Reduction This Festive Season?

New Delhi (The Uttam Hindu): After the recent GST rate cut that gave some relief to consumers and businesses, all eyes are now on the Reserve Bank of India (RBI). In a few hours, the central bank is set to announce its monetary policy decision on the repo rate, which could have a direct impact on EMIs, housing loans, and overall borrowing costs.

Experts say that with inflation showing signs of moderation and demand picking up during the festive season, there is a possibility that the RBI may opt for a rate cut to boost economic activity. However, some analysts believe the central bank might take a cautious approach due to global economic uncertainties and fluctuating crude oil prices.

A repo rate cut, if announced, will not only make loans cheaper but also give a strong push to sectors like real estate, automobiles, and consumer durables—especially at a time when festive sales are at their peak. On the other hand, if the RBI keeps the rate unchanged, it may signal that the focus remains on maintaining economic stability.

Consumers, investors, and industries are eagerly waiting, as this decision could decide the pace of India’s economic momentum in the coming months.