In the festive season, the Reserve Bank of India has given a big blow to the common man. RBI has increased the repo rate by 50 basis points. This can make EMI expensive. The central bank has increased its prime lending rate (repo rate) by 50 basis points to 5.90 per cent.
Reserve Bank of India (RBI) Governor Shaktikanta Das informed about the decisions taken in the meeting after the meeting of the Monetary Policy Committee (MPC). He told that it has been decided to increase the repo rate by 50 basis points. In order to control inflation, the central bank is continuously increasing the repo rate. Last month on August 5, RBI had increased the repo rate by 0.50 percent.
If you include the increase in the repo rate today, the RBI has increased the repo rate a total of four times since May. Due to this, the repo rate has now reached 5.90 percent, which was at 5.40 percent.
Presenting the monetary policy review, RBI Governor Shaktikanta Das said, “Five out of six members of the Monetary Policy Committee have supported the policy rate hike.” “We are facing a new ‘storm’ from the aggressive rate hikes of central banks of various countries after the Kovid pandemic, the Russo-Ukraine war,” he said.
RBI Governor Shaktikanta Das said, “In view of the high rate of inflation, the Monetary Policy Committee has consciously decided to stick to the stance of withdrawing the accommodative stance on monetary policy.” He said that the inflation rate is expected to be around 6 per cent in the second half of the financial year 2022-23.
Video: RBI’s big announcement – repo rate hiked by 0.50%, loan becomes costlier