RBI Hikes Repo Rate:
On 5 Aug 2022, The Reserve Bank of India decided to increase the repo rate by 0.50 percent.
With an increase of 0.50 percent, now the repo rate has increased to 5.40 percent. Earlier the repo rate was 4.90%.
Even before this, in the policy announcement made on June 8, the RBI had increased the repo rate by half a percentage point.
Recently, the US central bank Federal Reserve (US Fed) also aggressively increased interest rates.
Due to the increase in the interest rates of the US Fed, it was expected that the RBI would also increase the interest rates.
Let us tell you that the Reserve Bank of India has increased the repo rate by 0.50 percent to bring down inflation.
With this increase in repo rate, your loan installment will increase as banks will pass the burden of this increase on the customers.
With the increase in the repo rate, the installment of home loans, auto loans, and personal loans will also increase.
If your home loan is of Rs 20 lakh and the tenure is of 20 years, then your installment will increase from Rs 16,112 to Rs 16,729.
RBI has retained the country's Gross Domestic Product (GDP) growth forecast for the financial year 2023 at 7.2 percent.
Reserve Bank of India Governor Shaktikanta Das informed about the decisions of the Monetary Policy Committee.