RBI : Repo rate increased by 0.35 percent, EMI will be expensive

RBI has increased the repo rate by 0.35 percent. It is clear from this that now loans will also be expensive and people will be under pressure to pay more EMI. It will depend on the banks. With this, the repo rate has increased to 6.25 percent. Despite global uncertainties, the Indian economy remains strong and the country remains an attractive destination for investment. Reserve Bank Governor Shaktikanta Das. With the announcement, Shaktikanta Das said that there is ongoing uncertainty in the global economy. The poor are the most affected by food shortages and high fuel prices. Das said that due to the Russia-Ukraine war, inflation at the global level has remained high. Shaktikanta Das said that the stance of the Monetary Policy Committee to withdraw the accommodative stance on the policy rate has been maintained.

He says that the Indian economy remains combative. Amidst the slowdown in the global economy, India is an example to the world as a ray of hope. The RBI governor says that the decision to increase the repo rate by 0.35 percent has been taken in line with market expectations. The Reserve Bank has increased the key policy rate repo by 1.90 percent from May this year. However, despite this, inflation has remained above a satisfactory level of six per cent since January. It is worth mentioning that while deciding the monetary policy, RBI primarily focuses on the Consumer Price Index (CPI).

It is worth noting that the Chamber of Commerce and Industry of India, ASSOCHAM, had recently urged the Reserve Bank of India (RBI) to keep the increase in the key policy rate repo low in the monetary policy review, which the RBI sidestepped along with the announcement. The Board of Industries said that if there is a high increase in interest rates, it can have an adverse effect on the economic recovery.