RBI hikes repo rate by 50 basis points, home, car and personal loans will be expensive

RBI Governor Shaktikanta Das has announced an increase of 50 basis points in the repo rate on Wednesday. This can give a big blow to the bank customers, as soon banks can increase the EMI of home loan, personal loan and car loan. 

The Reserve Bank of India (RBI) has changed the repo rate for the second time in 5 weeks after the three-day meeting of the Monetary Policy Committee on June 8. Let us tell you that last month on May 4, 2002, RBI had suddenly announced an increase of 0.40 basis points in the repo rate. The same RBI has increased the repo rate by 50 basis points again after 5 weeks today i.e. on June 8, 2022.

RBI has changed the repo rate due to rising commodity prices in the global market and increasing pressure on other fuels including petrol and diesel.

RBI has projected retail inflation to be 7.5 per cent in the late April-June quarter. While retail inflation is expected to be 7.4% during the second quarter. Whereas in the third quarter of FY 2022, this figure could be 6.2 percent. Whereas in the fourth quarter, retail inflation may be 5.8 percent.

RBI Governor Shaktikanta Das said that according to the estimates released by the National Statistics Office on May 31, India's GDP growth rate is estimated to be 8.7% in the financial year 2021-22. Whereas in the financial year 2021-22, the real GDP is more than the level of the epidemic ie 2019-20.