What will be the effect on common people?
Let me tell you that raising the repo rate towards RBI will affect crores of customers of banks. With the increase in repo rate, the loan given to the customers by the banks will become more expensive. The rise in interest rates will have an impact on EMIs. Customers’ EMI will be higher than before.
RBI Governor Shaktikant Das announced this while giving information about the decision taken in the meeting of the Monetary Policy Committee. The three-day meeting of the Monetary Policy Committee of the Reserve Bank had been 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, led by Governor Das, discussed the realities of inflation and economic growth. In view of 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 to banks on behalf of RBI is called repo rate. Rising repo rate means banks will get loans from RBI at higher rates. This will increase the interest rate on home loan, car loan and personal loan etc., which will have a direct effect on your EMI.
first published:June 8, 2022, 11:02 a.m.