RBI Repo Rate Hike: RBI's repo rate increased by 0.50 percent, loan will be expensive, EMI will increase

Despite all the efforts, due to the ever-increasing inflation in the country, the Reserve Bank (RBI) has once again announced to increase the repo rate (RBI Repo Rate Hike) on Friday. The Reserve Bank of India, in its policy review on Friday, has increased the key policy rate, the repo rate, by half a percentage point. SDF has been increased from 5.15 per cent to 5.65 per cent.

The Monetary Policy Committee (MPC) in its meeting today has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90 per cent. Let us tell you that after an unexpected increase of 40 basis points in the repo rate in May, the RBI has increased the repo rate by 50 bps in the months of June and August. In this way, this is the fourth consecutive increase made by RBI.

Since May 2022, the Reserve Bank has increased the repo rate by 190 basis points (1.90 per cent). The increase in the repo rate by the RBI will increase the EMI of other loans like your home and car loan. RBI Governor Shaktikanta Das while announcing the hike in repo rates said that the Monetary Policy Committee has decided to hike by 50 basis points. After this decision, now the repo rate has increased from 5.40 percent to 5.90 percent.

The RBI Governor said that many countries of the world are increasing rates sharply. One after another increase is taking dangerous form. Due to this there is a fear of slowing down of the economy. But inflation remains a matter of concern. Bonds, equity tax currency are all under pressure these days.

Shaktikanta Das said that India's GDP growth is still the best. GDP growth in FY23 Q2 is likely to be 6.3%. There is improvement in many sectors of the economy. However, he also indicated that core inflation is expected to remain at higher levels. There is a gradual recovery in demand and investment is seeing a pick-up. Demand will be better in the second half of FY23.