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RBI may increase the repo rate by 25-25 basis points in June and August. This increase will have a direct impact on interest rates
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The Reserve Bank of India (RBI) may increase the repo rate in the coming two monetary policy reviews. The central bank can increase by 25 basis points in June and 25 basis points in August.
Behind doing this, the Reserve Bank is trying to reduce inflation. The direct effect of increasing the repo rate will be on the interest rates of the loan from the bank. This will increase the EMI of your home loan, car loan and personal loan etc. The interest rate of banks can be increased by up to 50 points.
SBI Chief Economist Soumyakanti Ghosh has expressed the possibility of inflation figures going up in the coming months. He said that after the rate of retail inflation at 6.95 per cent in March, it is likely to go above 7 per cent by September.
At present the repo rate remains at 4 per cent. Let us tell you that the rate at which banks borrow from the Reserve Bank is called Repo Rate. Soumyakanti Ghosh expressed the hope that the inflation rate during April, 2022 to March, 2023 may remain 6.5 per cent. The 10-year interest of government securities is currently 7.24 per cent, which can go up to 7.75 per cent by September.