The general public might be stunned once more. There is a possibility that the Reserve Bank of India (RBI) will increase its repo rate in the near future. This may increase the EMI on the borrowers’ loans. A three-day meeting of the RBI’s Monetary Policy Committee (MPC) will begin on Monday. On December 7, the meeting’s outcomes will be made public.
Repo rate may increase
According to experts, interest rates went up by 0.50 percent three times in a row. But this time, the central bank can take a softer position on interest rates. At the same time, there is a chance that the RBI would raise the repo rate this time by 0.25 to 0.35 percent. This action can be made by RBI in light of retail inflation’s signs of easing and the need to foster growth.
Repo rate was increased this year
The MPC can also follow the Federal Reserve, the American central bank, and domestic variables, as it has signaled a small rate increase at the end of this month. 1.90 percent has been raised by the RBI since May. Despite this, since January, inflation has been over the tolerable range of 6%.
EMI may also increase
The EMI of the loan could increase as a result of an increase in the repo rate, which could have an impact on people’s finances as well. The banks’ lending interest rates rise together with the increase in the repo rate. It has an impact on people’s wallets. Repo rates refer to the interest rates at which the RBI loans to banks.
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