The monetary policy of the Reserve Bank of India (RBI) in December will be special in many ways. This time the meeting of the Monetary Policy Committee is to be held from 4th to 6th December and a few days after this i.e. on 10th December, the tenure of the current RBI Governor Shaktikanta Das is also ending. In such a situation, it is a big question whether he will continue in his post or not, because his continuing in this post has a connection with your pocket also.
Shaktikanta Das took over the responsibility of RBI Governor six years ago after the sudden resignation of Urjit Patel. During his tenure, he has done remarkable work towards controlling the problem of inflation that arose in the country due to Covid and thereafter. In such a situation, it becomes very important that there is no discussion of any kind regarding the extension of his tenure.
Inflation situation and departure of Shaktikanta Das
The inflation situation in the country seems to be worsening once again. In October, the retail inflation rate has once again crossed the upper limit of 6 percent and reached 6.2 percent. To control inflation, Shaktikanta Das first increased the repo rate to 6.5 percent and then kept it stable for about one and a half years.
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Now when there are chances of inflation increasing again in the country. On the other hand, Donald Trump’s victory in America is also expected to have an impact on the Indian economy, because Donald Trump has talked about strictness in trade with foreign countries. In such a situation, Shaktikanta Das’s departure can derail this entire process.
How will it affect your pocket?
Experts believe that considering the current situation of inflation and the challenges of the economy, it is clear that there may not be any reduction in the repo rate cut during the next monetary policy. RBI can wait for the coronation of Donald Trump in January and the subsequent changes in America’s policies. Only after this can he take a clear decision in this regard.
Repo rate affects your pocket in many ways. This decides whether the EMI of your car, home or personal loan will be reduced or not. Not only this, the flow of money in the economy is also decided by the repo rate.
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The tenure of the Governor of Reserve Bank of India is 3 years. The Cabinet Committee on Appointments headed by the Prime Minister decides on his appointment. However, whether to extend the tenure of an RBI Governor or not depends on the government. Current RBI Governor Shaktikanta Das is 67 years old.
