RBI Repo Rate: Loan EMI May Become Expensive

An important meeting of the Reserve Bank of India is to be held next week amid the impact of inflation in the country. Many important issues are to be discussed and decided in the meeting of the Monetary Policy Committee. People knowledgeable in the matter say that in the meeting, the RBI can decide to increase the policy interest rates. Due to this, the EMI of the loan of can be expensive.

Repo Rate May Increase By 0.40 Percent

RBI may increase the repo rate by 0.40 percent in the review to be held next week. According to foreign brokerage company Bank of America Securities, the RBI had increased the repo rate by 0.40 per cent in May last too, after which the rate was 4.40 per cent. The reason for this was said to be an attempt to control inflation.

According to the brokerage company, the inflation figure is expected to be 7 percent in May also. In such a situation, the Reserve Bank can take more steps to control this. RBI may increase the repo rate by 0.40 percent next week. Apart from this, it can also increase by 0.35 per cent in the August review.

Loans May Be Expensive

If the repo rate continues to increase in the same way, then the burden of loan EMI for the common man is likely to increase further in the coming days. The report claimed that in the financial year 2022-23, the retail inflation rate is likely to remain at an average of 6.8 per cent.

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