New Delhi. In the festive season, RBI has given a big blow to the general public. RBI Governor Shaktikanta Das has announced an increase in the repo rate for the fourth time in a row. While increasing the repo rate, the RBI has increased the rate by 50 basis points. With which the repo rate has gone up to 5.90 percent. Now bank loans will become expensive and EMI will also increase, whose direct effect is going to be visible on the general public. Let us tell you that RBI had increased the repo rate in May also. In May, the repo rate was raised to 1.90 per cent. It is being told that this time RBI has increased by 50 basis points, which is the highest in three years.
RBI Governor Shaktikanta Das announces that RBI “increases the policy repo rate by 50 basis points to 5.9% with immediate effect.” pic.twitter.com/YpDjOVsgus
— ANI (@ANI) September 30, 2022
what is repo rate
Repo rate is the rate at which RBI gives loans to all banks. In such a situation, now after the loan from RBI becomes expensive, all the banks will increase the loan rates for the general public. With this, now all types of loans including car, home loan, EMI will become expensive. It is being said that all this is being done to reduce inflation. Central banks around the world have also raised interest rates to curb inflation. The US Fed Reserve has also increased its interest rates and this is the fourth time the bank has done so. The month of August also saw an increase in inflation. Now after increasing the repo rate, it is being speculated that inflation will be controlled to some extent.