New Delhi: Reserve Bank of India (RBI) has announced new monetary policy. RBI has announced to increase the repo rate by 50 basis points to control inflation. After this hike, the repo rate has increased from 4.40 percent to 4.90 percent. This will increase the EMI burden of the loan.
What will be the effect on common people
Let us tell you that the effect of increasing the repo rate on behalf of RBI will affect crores of customers of banks. With the increase in the repo rate, the loans given by the banks to the customers will become expensive. The effect of increasing interest rate will be on EMI. The EMI of the customers will increase as compared to earlier.
Reserve Bank Governor Shaktikanta Das announced this while giving information about the decision taken in the meeting of the Monetary Policy Committee. This three-day meeting of the Monetary Policy Committee of the Reserve Bank was going on since Monday and concluded today. This was the third meeting of the RBI MPC in this financial year. In the meeting, the five members of the committee under the leadership of Governor Das deliberated on the architectural situation of inflation and economic growth. In view of the uncontrollable inflation, the members of the committee agreed that at present there is no other option but to increase the repo rate.
What is repo rate?
The rate at which loans are given by RBI to banks is called repo rate. An increase in the repo rate means that banks will get loans from RBI at a higher rate. This will lead to higher interest rates on home loans, car loans and personal loans, which will have a direct impact on your EMIs.
first published:June 8, 2022, 10:05 a.m.