The process of getting the loan costlier has not stopped, how far can the interest rates reach?

The RBI has increased the repo rate by 0.35 percent as expected on Wednesday. In this way, the repo rate has been increased for the fifth time in a row. With this the repo rate has gone up to 6.25 percent.

The process of getting the loan costlier has not stopped

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After increasing the rates in the December policy review, if you are expecting relief now, then you will be disappointed. In fact, experts are assuming that there is a possibility of increasing the rates even further than the conditions prevailing. reserve Bank of India Looking at the stance of RBI, analysts and economists believe that the repo rate will increase to around 6.5-6.75 percent. At present, the repo rates are at 6.25 percent, which means that the rates may increase by half a percent in this financial year. The next policy review will be in February and this will be the last review of this financial year.

What is the opinion of experts

The RBI has increased the repo rate by 0.35 percent as expected on Wednesday. In this way, the repo rate has been increased for the fifth time in a row. With this, the repo rate has gone up to 6.25 percent. HDFC Bank Chief Economist Abheek Barua said, “The policy review indicates that we will see further rate hikes. We expect it to stop at 6.5-6.75 percent.

UBS India economist Tanvi Gupta Jain also predicted another increase in the repo rate. He said, “We are expecting another hike of 0.25 per cent in the February policy review. Even if core inflation eases further from 6.8 per cent in October to 5-5.5 per cent by the June 2023 quarter, it will remain above the RBI’s medium-term target of 4 per cent.

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Rajni Sinha, chief economist at CARE Ratings, also feels that a 0.25 per cent hike could be done in the February policy review. Dharmakirti Joshi, chief economist of Crisil Ratings, said that the rate hike will happen further. “While headline inflation at the domestic level has started declining, upside risks to inflation excluding food and fuel prices remain,” he said. Soumya Kanti Ghosh, Chief Economic Advisor, State Bank of India Group, said that another increase in the repo rate by 0.25 percent is expected in February.