Reserve Bank of India hikes repo rate by 0.50 percent
Reserve Bank of India hikes repo rate by 0.50 percent

Increasing its repo rate by 50 basis points, the Reserve Bank of India (RBI) attempted to control inflation on Wednesday. The repo rate increased from 4.40 percent to 4.90 percent after this increase. On Wednesday, Shaktikanta Das spoke about the decision taken at the Monetary Policy Committee meeting.

Related Post – Best Site To Buy Instagram Followers From These 5 Trusted Websites

Repo rate hiked for the second time in a month

Earlier, the RBI surprised the market with a 40-point increase in the repo rate on May 4. During the same period, the cash reserve ratio also increased by 0.50 percent to 4.5 percent. This has been the second increase in the past month. The country’s inflation rate has consistently been above 6 percent. This step was taken by the RBI to provide relief to the general public.

See Also  RBI advises banks to provide exchange of Rs 2,000 notes to the public in the usual manner

What will be the effect?

RBI’s increase in the repo rate on behalf of banks will affect crores of customers. As a result of an increase in the repo rate, the loans given by banks to their customers will be more expensive. Increases in interest rates will have an effect on EMIs. As compared to earlier, the EMI of the customers will increase.

What is the Repo Rate?

In the repo market, banks borrow money from the Reserve Bank of India at a rate called the repo rate. The increase in repo rates means that banks will get loans from the RBI at higher rates. There will be an increase in the interest rate on Home Loan, Car Loan Personal Loan, etc., which will directly impact your monthly EMI.

See Also  2000 rupee notes out of circulation in the country, can be exchanged in banks until 30 September

Related Post – Top Professional Hairstylists In Kolkata

Advertisement -