THE INTEREST RATE CUT (REPO RATE CUT) BY RBI IMMEDIATELY FROM DECEMBER 2024-MPC MEET SHOULD BE IN NATIONAL INTEREST

THE INTEREST RATE CUT (REPO RATE CUT) BY RBI IMMEDIATELY FROM DECEMBER 2024-MPC MEET SHOULD BE IN NATIONAL INTEREST


Dear Readers,

The interest rate (repo rate cut) by RBI immediately from December 2024-MPC Meet should be in National Interest (of India), I am very firm in this Opinion.
 
In fact the RBI's internal team in the MPC is showing undue eyes to the Nation for a long time by sitting tight with the Repo Rate of 6.5% from February 2023 for more than 20months now, it is one of the Highest Interest Rate Charged among the Central Banks in the World. While some of the External MPC Members nominated by Govt of India have expressed dissent in the MPC in recent times repeatedly , the RBI's internal team in MPC dragging also some of them to their side creating a majority in MPC to tilt it in favour of holding the Repo Rate at Status Quo 6.5% is not in fairness to the Nation. 

Recently also the Hon'ble Finance Minister of India Ms Nirmala Sitharaman and Hon'ble Commerce and Industry Minister Mr. Piyush Goyal have said in public that a Rate Cut in the Repo Rate of RBI is expected sooner than later. That is the Govt of India's tone, if that is not going into the heads in RBI, in that case they are acting like bureaucrats of British Era (British Rule) in India, because they are not taking into consideration of the common people of India, who have to pay EMIs of more than 25% compared to the EMIs that existed this Pre-6.5% Repo Rate of RBI that has been staying there since February 2023. 
 
This interest rate (Repo Rate of 6.5% of RBI) is causing serious pains for common people for their livelihood borrowings that is affecting more than 80Crore Population of the Nation 2/3rd (66%) of the Population if we consider India's Population as 140 Crores now, as the EMIs have been increased by the scheduled lenders (the Banks) by more than 25% after February 2023 with this kind of Repo Rate of 6.5% of RBI. 

Those who find interest can read the following news article also published by the Financial Express in public domain:
 

GDP down, capex down, consumption down! Will the RBI cut rates or focus on inflation?

https://www.financialexpress.com/policy/economy-gdp-down-capex-down-consumption-down-will-the-rbi-cut-rates-or-focus-on-inflation-3682169/

In fact the RBI fellows are taking undue shelter in the name of Inflation, and inflation management with interest rate alone, is a very dogmatic and out-dated concept. 

Today, I myself had gone to a Vegetable Market in the City of Mumbai, that market can be called as a standard priced market ( not too high or two low market) where the following are the prices:
Tomato : Rs. 60 per kg
Onion  : Rs.  80 per kg
Cabbage: Rs. 40 per kg
Cauliflower: Rs. 70-80 per kg
Brinjal        : Rs. 60-70 per kg
Potato        : Rs  45 per kg
French Beans: Rs. 80 per kg
Lady's Finger : Rs. 60 per kg 
Pointed Gourd: Rs. 90-100 per kg
Cucumber : Rs. 40 -50 per kg 
Pumpkin:     Rs. 50 per kg 
Some Fruits:
Oranges : Rs. 60-80 per Kg ( depending on size)
Apples    : Rs. 100-120 per kg (Standard Indian Product) 

I myself have bought vegetables and Fruits as above for consumption in household, it is the reality at a City like Mumbai now. 

These are very normal prices as I wrote above in Open Consumer Market at the City of Mumbai, except Onion above which is a bit high price now, because of Off-Season, the new crop has not come in good quantity, normally it is Rs. 40-50 a kg in normal timing. 

The farmers have to get also some price at the Field and the Traders doing logistics have to have some profit for their labour. Where is the inflation of Vegetables or Food Inflation that is eating the heads of RBI for so long to keep the highest level of Repo Rate in the name of Inflation. These are the normal prices of Mumbai, very close to the same, round the year at Mumbai, those who live at Mumbai will say and verify. Even RBI HQ is at Mumbai, it is not at New York or at City of Washington DC.  

If RBI is not cutting the Interest Rate immediately, it is causing undue damages to the Indian Economy, I am very firm in my Opinion on this subject.
Yes, there are a bunch of Bankers and Speculators who want the Higher Interest Rate to continue and they also write biased articles in public domain saying in favour of holding the interest rate unchanged, also you can find out. But they are doing a great disservice to the cause of the Nation by saying so and doing that.  

The RBI should go for the essential National Need for Rate Cut in the forth-coming MPC Meet between 4-6 December 2024, after 2days. 

I hope Better Sense will prevail and the Rate Cut in Interest Rate (Repo Rate of 6.5%) of RBI will be put into effect from the December 2024 MPC Meet in stead of allowing the Nation to suffer by further waiting for it. 

If the Status Quo will continue, then the Change of Guard at RBI will have imminent possibility in the National Interest. 

Best regards,
Dr.Nimain Charan Biswal,
Mumbai, India 


About the Author: Dr. Nimain Charan Biswal is a B.Sc.(Agri. Science and Technology), M.B.A. and Ph.D.(Management Area ) by qualifications; and he has 38+ years of work experience in both industrial and development sectors in diversified fields of social importance. He has been educated at Orissa University of Agriculture and Technology (OUAT)-Bhubaneswar, Institute of Rural Management Anand (IRMA) and Gujarat University (with Resource Support of IIM-Ahmedabad). He is further educated at IIM-Calcutta, XLRI-Jamshedpur, Apple Computer Industries and Spar Inc., USA. He has worked for reputed National and International Organizations in Senior/Top Management Capacities at Board level as well as Managing Director and CEO. He is a management expert covering extensive areas from management in industrial sectors, management in agriculture and dairy, development management to management of public systems. He is a prominent professional of India and known Internationally as well. He is also a Political Strategist. He lives at Mumbai in India.

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