The monetary policy committee of the Reserve Bank of India (RBI) has started from Monday. RBI Governor and MPC Chairman Shaktikanta Das will announce the results of the three-day discussion on Wednesday (October 9). Economic experts believe that the RBI may not follow the US Federal Reserve, which recently reduced interest rates by half a percent. Kaushik Das, Chief Economist for India and South Asia, Deutsche Bank, said, "We think that the RBI will not change the policy repo rate (currently 6.50 percent) in the upcoming October monetary policy meeting. However, people taking home and car loans need not be disappointed even if there is no reduction this time. There will be a reduction of up to .40% in the interest of home loans in the coming time. Let us know when home loans will become cheaper. 

Home and car loan EMI will decrease from December 

Economic experts say that this time there is very little hope of RBI cutting interest rates. But in the festive season, banks will come up with many attractive schemes to increase their market share. In this, customers with good credit score will be offered home loans at cheap interest rates. At the same time, if the interest rates are not cut this time, then the repo rate cut will be certain in the next quarter. Due to this, in the last quarter of this financial year, you can expect a 25-40 basis point cut on the home loan interest rate from the bank. That is, you can get the gift of cheap home loans from December. 

Concerns increased due to inflation and global tension 

Retail inflation in India remains a concern, and the West Asia crisis is likely to worsen, which has impacted crude oil and commodity prices. Earlier this month, the government reconstituted the rate-setting committee of the Reserve Bank of India (RBI) - the Monetary Policy Committee (MPC). The reconstituted committee, with three newly appointed external members, will begin its first meeting on Monday. The Reserve Bank of India has kept the repo rate unchanged at 6.5 per cent since February 2023. Experts believe there is scope for some easing in December itself. The government has tasked the central bank with ensuring that the Consumer Price Index (CPI)-based retail inflation remains at four per cent (plus or minus two per cent).