Your EMI may increase further in the coming days. The days of cheap loans seem to have passed. Because after increasing the repo rate on Wednesday by the Reserve Bank, more installments can also be seen in the coming days. According to Ecowrap, a research report by State Bank of India, there is a possibility of increasing interest rates in the coming days also in the June and August meeting of the monetary policy review. It is also expected in the report that by the end of March of this financial year i.e. 2023, the repo rate may reach the level of 5.15 percent.
In view of the Corona epidemic, the Reserve Bank of India had cut the repo rate by 1.15 percent. The first 0.75 per cent reduction was in March 2020. After that, in May 2020, it was again cut by 0.40 percent. There has been no change in rates since then. Now in view of the rising inflation in the country, the Reserve Bank has once again started increasing the rates to control it.
Big hit of inflation: Many products including soap and shampoo became expensive by 15 percent, be ready to cut expenses
RBI Governor Shaktikanta Das on Wednesday announced an increase of 0.40 per cent in the repo. Counting the reasons for rising inflation in the report, it has been said that in view of the Russo-Ukraine war, the prices of all food and drink have increased. Due to this the Reserve Bank is also under pressure.
Interest rates are rising around the world
According to the report, apart from the Reserve Bank, 21 countries of the world have increased rates in the months of April and May this year. Also, out of these 21 countries, 14 countries have increased rates by half a percent or more. The US central bank, the Federal Reserve, has also increased interest rates by half a percentage point, making the biggest increase in two decades.
Need to consider reduction in taxes on petrol and diesel
The Ecowrap report suggests that there is a need to focus on measures to reduce supply-side associated cost pressures at this time. Reduction in taxes, especially on petrol and diesel, also needs a fresh thought. This can also help in controlling inflation and the steps taken by the Reserve Bank will also start to have a full effect, although even after increasing the interest rates at the policy level, for some time inflation will be affected. There is a possibility of staying at higher levels.