Nomura Predicts RBI Repo Rate Cut By 75 Basis Points From August 2023 Big Relief From Costly EMI Likely

RBI Repo Rate Hike: If you are troubled by the expensive EMI, then there is good news for you. From the month of August this year, you can get relief from expensive loans. Due to Slowing Economic Growth and Easing Prices, RBI may reduce interest rates from August 2023. Foreign brokerage house Nomura Holdings has said these things in the notes sent to its clients.

Economists of Nomura, headed by Sonal Verma, have written that due to global factors, India’s economic growth may slow down in 2023 and the growth rate may come down to 4.5 per cent, due to which the Reserve Bank of India will be in the second half of 2023. may have to take a decision to cut interest rates. According to the report, after increasing the repo rate by 25 basis points in February 2023, the RBI may withdraw from its policy of strictness in monetary policy. Last year also, Nomura had first predicted RBI’s strict monetary policy in view of rising inflation, after which RBI increased the repo rate five times from 4 percent to 6.25 percent.

According to economists at Nomura, the Indian economy slowed down in the July-September quarter due to a jump in inflation and a decrease in demand due to an increase in interest rates, and it grew at a rate of 6.3 percent. These economists believe that India is in a better position but weak exports and industrial growth may reduce investment.

However, Nomura is the first institution which has predicted such a huge cut in the repo rate in 2023. Nomura believes that RBI can reduce its policy rate from 6.50 percent to 5.75 percent. Goldman Sachs has said in its outlook report on India that there may be a 25 basis point repo rate cut between October-December.

It is a matter of relief that on January 12, 2023, according to the inflation rate figures for December 2022, the retail inflation rate has come down to 5.72 percent. Food inflation has come down. The inflation rate has come down to the RBI’s tolerance band of 2 to 6 per cent, which was above 7 per cent. After which the expectation is increasing that there will be a break on the increase in interest rates. And in the coming days, the process of reducing the interest rate may start, which can provide relief from expensive EMI.

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