While announcing the monetary policy today, RBI has increased the repo rate by 0.50 percent. This will make home, car and other loans more expensive for consumers. However, after this the interest on deposits will also be expected to increase.
This time the Reserve Bank of India has increased by 50 basis points or 0.50 per cent. This was announced by the Governor of Reserve Bank of India Shaktikanta Das. With this, the repo rate has now increased to 5.90 percent.
In the press conference, Shaktikanta Das said that these changes will be implemented with immediate effect. This is the fourth increase in interest rates by the central bank this year. Earlier in August, the repo rate was increased by 50 basis points and the interest rates were increased from 4.90 per cent to 5.40 per cent.
Due to the increase in the repo rate by the RBI, the interest rates of loans like home, personal and car loans will increase and the EMI will increase. In order to control the rising inflation in the country, the central bank is continuously increasing the interest rates, but still the inflation rate in the country is more than the limit set by the Reserve Bank of India. At present it is at 7 per cent.
With this decision of the Reserve Bank, the loans given by the banks will become more expensive. Actually, many loans of the bank are directly linked to the repo rate.
Therefore, any change in the repo rate reaches the common customer. Due to the increase in policy rates from time to time, home loan rates will now cross 8 per cent. In such a situation, it will become expensive for people to buy a house.
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