Home loan EMI may increase again today, RBI will announce interest rates
The meeting of the Monetary Committee of the Reserve Bank of India started on Monday and it is expected that the central bank may increase the repo rate this time as well. If experts are to be believed, the central bank can increase the repo rate by 25 basis points.
In the midst of skyrocketing inflation, today the common man may get another shock. The Reserve Bank of India may announce an increase in the repo rate today. Today is the last day of RBI's monetary review meeting which began on Monday. There is a possibility that RBI Governor Shaktikanta Das may increase the repo rate this time also. If experts are to be believed, the central bank can increase the repo rate by 25 basis points. Explain that in the last five credit policies, RBI has increased the repo rate by a total of 225 basis points or 2.25 percent.
Experts estimate that the inflation rate in the country has come down to the credit policy of RBI. The process of increasing the repo rate five consecutive times last year will continue this year as well. According to experts, RBI can increase the repo rate by a maximum of 0.25 percent. It can be brought down to 6.50 percent. If the interest increases, the EMI of the loan will also increase. At the same time, many financial experts believe that RBI will not increase the rates in this policy. If this happens then people will be able to get some relief from rising EMI.
By the end of the last year 2022, RIB had increased the repo rate five times one after the other to 6.24 percent. The last increase in this was in December 2022. At that time, after the MPC meeting, interest rates increased by 0.35 percent. In a year itself, the RBI had increased the repo rate by a total of 225 basis points or 2.25 percent.
The repo rate set by RBI directly affects the loans of banks. If its rates increase then all types of loans like home loans, auto loans, and personal loans will become expensive. The repo rate is the rate at which RBI lends to banks, while the reverse repo rate is the rate at which RBI lends money to banks. The lower the repo rate, the lower the EMI of the loan. On the other hand, due to the increase in the repo rate, all types of loans become expensive.