Good News: Your loan EMI might decrease soon; Here's how

The SBI's Ecowrap report suggests that the RBI might ease the repo rate due to a decrease in the inflation rate.

In July, the retail inflation rate fell to 3.54% on a yearly basis. This is the lowest level of inflation in 59 months. Prior to this, the inflation rate in June was 5.08%.

Along with retail, the wholesale inflation rate has also come down to a 3-month low. It was 3.36% in June 2024, which has come down to 2.04% in July.

With the inflation rate currently within the RBI's 2 to 4 percent range, a repo rate cut may be considered in the October 2024 monetary policy review.

If RBI reduces the repo rate, it will have a direct impact on the EMI of the loan. Reducing the Repo Rate will also reduce your loan installments. Currently it is at 6.5%.

In the SBI Ecowrap Report, the economist, based on his analysis, has told that the monsoon has been very good so far this year. These are good signs for the economy.

According to SBI's Ecowrap Report, real GDP growth is expected to be around 7 to 7.1% in the April-June quarter of the financial year 2024-25.

The Ecowrap Report states that the GDP is expected to be 7.2% in the second quarter, 7.3% in the third quarter and 7.2% in the fourth quarter of the financial year 2024-25.