RBI hikes repo rates
Retail inflation in the country has reached a 17-month high in March. At the same time, the wholesale inflation rate has increased to 14.55 percent in March 2022. Inflation has remained above the highest level of the Reserve Bank target range for the last three months
The era of cheap loans issued in the country for the last two years has ended today. reserve Bank (RBI) today repo rates ,Repo Rate) has been announced to increase. Today, in an unexpected move, Reserve Bank Governor Shaktikanta Dans announced a rate hike even before the next policy review. Repo rates have been increased by 0.4 percent and the repo rate has now increased to 4.4 percent. The Governor informed that in view of the changing circumstances, a meeting of the MPC was held in early May, in which the decision to increase the rates was taken. In the last policy review meeting itself, the Reserve Bank had expressed concern over the rising inflation rate. After which there was a possibility that the Reserve Bank would now replace the growth with inflation.inflation) under control. However, in view of the sharp rise in inflation, the Reserve Bank decided not to wait for the next review to take action. The hike in rates has come into effect with immediate effect.
what will be the effect on you
With the increase in the repo rates, the EMI of the loan will increase as the loan cost of the banks will increase. Repo rate is the rate at which banks borrow money from the Reserve Bank. With this increase, the loan cost of banks will increase and they will pass it on to the customers, due to which your home loan, auto loan or personal loan will all become expensive in the coming time.
Inflation reached 17-month high in March
At present, the inflation rate of the country has reached a record high. Retail inflation in the country reached a 17-month high in March due to increase in the prices of food items and manufacturing goods. At the same time, the wholesale inflation rate has increased to 14.55 percent in March 2022. Inflation has remained above the highest level of the Reserve Bank target range for the last three months.
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