The repo rate has been raised by 50 basis points by the Reserve Bank of India (RBI). Your EMI will likewise increase in price as a result. The current repo rate is 5.90%, up from 5.40%, while the SDF rate is 5.65%, up from 5.15%. Five of the six MPC members supported raising the rates. According to the RBI, all sectors continue to be concerned about inflation. Earlier, the interest rate was raised by a number of significant central banks throughout the world, including the US Federal Reserve.
Repo rate increased by 1.90 percent since May
The RBI had previously indicated raising the repo rate by 0.50-0.50 percent twice in June and August based on the MPC’s recommendations. The central bank abruptly raised the interest rate by 0.40 percent earlier in May. This indicates that since May, the repo rate has grown by 1.90 percent.
Future loans will be more expensive
The cost of borrowing will rise if the repo rate rises. Loans will grow more expensive in the future if banks find money to be pricey. Customers will feel the effects through banks. The sale of homes is anticipated to rise further as a result.