The Budget Disappoints, Middle Class Looks to RBI for Relief, Good News Expected Next Week! Finance Minister Nirmala Sitharaman presented the interim budget for the fiscal year 2024-25 on February 1. The budget did not feature any major announcements. However, with no relief in income tax, the middle class is disheartened. After the meeting on February 8, the RBI will announce the repo rate. People are now hopeful for positive outcomes from the RBI’s meeting.
Finance Minister Nirmala Sitharaman presented the interim budget for the fiscal year 2024-25 on February 1. The budget did not feature any major announcements. However, with no relief in income tax, the middle class is disheartened. Now, the hopes of the middle class are pinned on the RBI’s monetary policy review meeting scheduled for next week, February 6 to 8, 2024. Following the meeting on February 8, the RBI will announce the repo rate. People are now hopeful for positive outcomes from the RBI’s meeting.
Will Home Loans Get Cheaper?
The budget has left the salary class high and dry. There was no relief in income tax. With no tax relief, people are now eyeing the RBI’s repo rate. A reduction in the repo rate will make home loans cheaper. The burden of EMIs will decrease. People are now looking forward to February 8 for some relief.
Relief Expected in Interest Rates
The country’s economy is in good shape. Inflation is also decreasing. The US Federal Reserve has not increased interest rates. The Fed has maintained interest rates between 5.25% and 5.50%. According to market analysts, in the second half of 2024, inflation may drop by 2.5% from the previous year, raising hopes that the RBI may cut interest rates by 0.50% this time.
Good News from RBI Expected
Positive signs are emerging due to a decrease in fiscal deficit. This raises hopes for a reduction in inflation. This will also make the RBI’s job easier. If inflation decreases, the RBI will cut the repo rate. Currently, the RBI has kept the repo rate at 6.5%. It is believed that the government may provide some relief by reducing the repo rate this time. Due to increasing global inflation, the RBI has not reduced the repo rate from May 2022 to February 2023. Therefore, there are expectations that the RBI may provide relief this time.