RBI announces increase in repo rate, home loan EMI will increase

RBI Governor Shaktikanta Das’s press conference has started. RBI has increased the repo rate by 0.25 percent. The central bank has increased the repo rate for the sixth time in a row. The repo rate has been increased from 6.25% to 6.50%. Prior to this, an important meeting of RBI’s MPC went on for three days. After this, Shaktikanta Das said these things while talking to the media for the information of the meeting and the decisions taken during this period.

Home loan EMI will increase due to RBI’s decision
With this decision of the central bank, the EMI of the home loan will increase. After the increase in repo rate, home loan EMI as well as car loan and personal loan will also be costlier. Explain that the repo was 4% in May 2022, which has now increased to 6.5%. The central bank governor said that during the last three years, due to global conditions, banks around the world had to take a decision to increase interest rates. These tough decisions were necessary to control inflation.

The global economic scenario is no longer as grim as before
The RBI governor said the global economic outlook is not as grim as it was a few months ago, with growth prospects improving in major economies, while inflation has declined. However, inflation still remains above target in major economies. The RBI governor has said that the inflation rate in the fourth quarter of the financial year may remain at 5.6%. The RBI Governor has predicted a CPI (Consumer Price Index) of 5% in the first quarter of FY24.

According to the information given by the RBI Governoraccording to the central bank’s monetary Four out of six members of the Policy Committee were in favor of increasing the repo rate. Announcing the policy, the RBI governor has said that inflation has come down and its effects are being monitored by the RBI MPC.

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