Mumbai Once again the EMI of your loan is expected to increase. The Monetary Committee of the Reserve Bank (RBI) has a meeting from today. RBI Governor Shaktikanta Das is going to announce the new monetary policy after three days. It is believed that once again RBI can increase the interest rates. The repo rate can be increased up to 0.25 percent. The reason is international. The Federal Reserve of America has increased its interest rates in the past. Due to this, there is a possibility of increasing inflation once again. To control this inflation, the Reserve Bank can increase the repo rate. If the repo rate increases, then the EMI of your loan is also bound to increase.
Earlier, RBI had increased the repo rate by 0.35 percent in December last year. Earlier, the repo rate was increased by 0.50-0.50 per cent for three consecutive times. Till now the repo rate has been increased by 2.25 percent. There was an increase in the EMI of the loan every time the repo rate increased. Talking about the rate of inflation, it was more than 6 percent continuously for three quarters from January 2022. There was some softening in it from October. The central government has set a target of keeping the inflation rate at 6 per cent (plus or minus 2 per cent). In such a situation, the increase in interest rates by 0.25 percent from the Federal Reserve has indicated to increase the repo rate once again.
Although the EMI will increase due to increase in repo rate, but there will also be benefit in deposit schemes. Last year, when the RBI increased the repo rate continuously, then the interest rates of FD and other deposit schemes in banks also increased. This time the interest rate of deposit schemes is likely to increase once again if the repo rate increases. In such a situation, those who save will get benefit. Explain that the repo rate is the rate at which RBI lends to other banks. When the repo rate increases, the amount with the banks decreases. This increases the interest rates on EMI and deposits.