Sign of Relief..! No change in the repo rate..!?

Sowmiya Sriram
Sign of Relief..! No change in the repo rate..!?
RBI Repo Rate: RBI has given good news to the people. The RBI did not make any changes to the repo rate during the Monetary Policy review (MPC). RBI has given huge relief to people. The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW">reserve bank of india (RBI) has given good news to the public as interest rates continue to rise. RBI has left the repo rate unchanged in the first bi-monthly monetary policy review (MBC) of the current fiscal year. It has been announced that the repo rate of the Reserve bank will continue at 6.5 percent. Delivering the bi-monthly monetary policy review, RBI governor Shaktikanta Das said the financial crisis due to bank freezes in the US is still an issue. RBI governor Shaktikanta Das said that the Monetary Policy Committee has combinely decided to keep the repo rate same at 6.5 percent. The repo rate has been kept at the previous level to continue the growth of the economy. If necessary, they will take action according to the situation, he said. The RBI governor said that the banking and NBFC financial system is strong. The economic growth rate is estimated to reach 7 percent
The RBI has projected the economic growth rate to be 7 percent in 2022-23. RBI governor said that inflation is still high. As the rate of inflation has not picked up, the process of increasing the interest rate which started from May 2022 has been stopped. The repo rate increased from 4 percent to 6.5 percent during this period. Notably, it is currently at its highest level in four years.
What is the repo rate?
The lending rate given by RBI to banks is called the repo rate. Increasing the repo rate will force banks to borrow from the RBI at a higher rate. This will increase the interest rate on home loans, car loans, and personal loans. This will have a direct impact on the EMIs of the borrowers.

Find Out More:


Related Articles: