In the festive season, common people can get a big setback. The meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) is ending today. RBI Governor Shaktikanta Das will announce the decisions taken in the meeting at 10 o’clock today. It is being said that the Reserve Bank of India can once again increase the repo rate today, which will be announced by Shaktikanta Das today. The central bank may increase the repo rate by 50 basis points today. After this increase, the repo rate will reach 4.90. After this increase, banks will make loans expensive and people’s EMI will also increase.
debt will become expensive
RBI can take this step to control the inflation rate that remains above the set target of the central bank. If this happens, then the EMI burden on you will increase as the loan becomes costlier.
The Reserve Bank (RBI) can increase the repo rate for the fourth time in a row to control inflation. If we look at the reports that have come in the past, it is being feared that there is an increase of 0.50 percent. Now it has been said in the report that RBI may increase interest rates for the fourth consecutive time in view of other global central banks including the Federal Reserve of America to deal with inflation.
This is the repo rate after three hikes
Significantly, as part of the steps taken to control inflation in the country, RBI has increased the repo rate by 1.40 percent since May. The repo rate which was at 4 percent during the Corona period, has now increased to 5.40 percent. If it is further increased by 0.50 percent, then the rate will increase to 5.90 percent.
inflation rate in the country
The retail inflation rate in the country has remained above the target limit set by the Reserve Bank of India (RBI) for the eighth consecutive month. If we look at the data of retail inflation released in the past, it has once again reached 7 percent in August. Earlier in the month of July, there was a decrease in retail inflation and it had come down to 6.71 percent.
What is Repo Rate?
Repo rate is directly related to the loan and EMI taken from the bank. Actually, repo rate is the rate at which RBI lends to banks, while reverse repo rate is the rate at which RBI pays interest to banks on keeping money.