EMI of home and car loan became costlier, RBI increased the repo rate again

Once again inflation has hit the general public. The monetary policy meeting, which has been going on for two days, has taken the decision to increase the repo rate again today. RBI Governor Shaktikanta Das announced that RBI has increased the repo rate by 25 basis points to 6.5%. Let us inform, in all the 5 meetings held before this, the rate rate was increased. The government has entrusted the RBI with the responsibility of keeping inflation at the level of six per cent (two per cent up or down). Inflation remained above 6 per cent for three consecutive quarters from January 2022. There was some relief in November and December 2022.

Due to rising inflation in the country, many times people do not even have money to buy essential things. The Reserve Bank (RBI) tries to control this inflation by increasing the repo rate. A lot of care is also taken to ensure that there is no burden on the public. Usually increments of 0.50 or less are made. During the time of Covid, it had increased by the maximum of 4 percent because of this, the interest rates of home, car and personal loans also increase.Due to the increase in the repo rate, the borrowers find it difficult to pay the EMI. Actually this increases the interest rates. Keeping the people in mind, the RBI works to increase the rates of which. Concession is also given to those who are unable to pay EMI for some reason due to the lockdown in the time of Covid, many people were given concession to pay EMI due to lack of income.

RBI Governor Shaktikanta Das announces that RBI increases the repo rate by 25 basis points to 6.5% pic.twitter.com/2ZyUSbCxEO

— ANI (@ANI) February 8, 2023