New Delhi. Reserve Bank of India Governor Shaktikanta Das has announced an increase in the repo rate during the press conference today i.e. on Wednesday. As a result of the increase in the repo rate, the prices of daily commodities used in the consumption of the common man are indicated to increase. At present, the repo rape has gone up to 4.40 percent. An increase in the repo rate will result in an increase in the rates of many loans. For example, an increase in the rates of many other loans including auto loans, home loans will be recorded. With the increase in the repo rate, the EMI rates will also increase. Now you can easily guess for yourself that when the EMI rates increase, then it is bound to increase the loan rates.
Let us inform that in this context, a meeting was held under the leadership of RBI on May 2 and 4, after which it has been decided to increase the repo rate. Economic experts believe that the increase in the repo rate has been announced by the RBI as a result of the Russia-Ukraine war.
Statement by Shri Shaktikanta Das, RBI Governor https://t.co/cktaninqLF
— ReserveBankOfIndia (@RBI) May 4, 2022
Now after reading all this, the question must be arising in your mind that what is the repo rate? So let us tell you that repo rate is the rate at which other banks provide loans to their customers on the instructions of RBI.
Now it is obvious that when the central bank will provide loans to other banks at higher repo rates, then other banks will also provide loans to the common customers at higher rates. It is said that an increase in the repo rate is being recorded as a result of the Russo-Ukraine war, in such a situation it has to be seen that how long the war in both the countries reaches its stop.