RBI News : The Reserve Bank of India (RBI) has increased the repo rate for the fifth consecutive time this year. RBI has announced to increase the repo rate by 0.35 percent. According to RBI, now the repo rate will increase from 5.90 percent to 6.25 percent. With this decision, now all types of loans including home loans will become expensive. After the MPC meeting, RBI Governor Shakti kant Das announced to increase the policy rates on Wednesday.
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RBI News : Repo Rate Increased
The common man of the country has once again got a jolt. After the monetary policy meeting of the Reserve Bank of India (RBI), Governor Shaktikanta Das has announced the fifth consecutive increase in repo rates this year. After this, all types of loans including home loan-auto loan will become expensive and people will have to pay more EMI.
Repo Rate Was Expected to Increase
The increase in the repo rate was already being predict. In many media reports, experts had expressed apprehension that despite the relief in inflation, the central bank may increase the policy rates by 25-35 basis points. Significantly, inflation in the country remained at a high level for a long time, but there has been a decline in it in the last October.
This Much Increase in Repo Rate
The process of increasing the repo rate by the Reserve Bank was started from the month of May 2022. Then the repo rate was increase by 0.40 percent. In the next month, in June, the RBI again increase the interest rates by 0.50 percent. This trend continued and an increase of 0.50 percent was see in the month of August, while in September also the central bank increase the policy rates by 0.50 percent. Now this is the fifth time, when the central bank has increase the pocket money of the people.
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RBI News : Effect of Repo Rate on EMI
Repo Rate Repo rate is the rate at which RBI lends to banks. While reverse repo rate is the rate at which RBI gives interest to banks for keeping money. Due to the decrease in the repo rate, the EMI of the loan decreases. While the increase in the repo rate makes all types of loans costlier and in this sequence, there is an increase in the EMI as well.
