New Delhi. The August 2022 meeting of the Reserve Bank’s Monetary Policy Committee (RBI MPC Meeting), which was going on since Wednesday, ended on Friday. After this meeting that lasted for three days, at 10 am, Reserve Bank Governor Shaktikanta Das informed about increasing the repo rate by 0.50 percent. In the last 4 months, due to this rapid increase in the repo rate, it has increased by 1.40 percent. Clearly, its effect will be seen on EMI ranging from home loan to personal loan.
increased for the third time in 4 months
This meeting of the Reserve Bank’s Monetary Policy Committee was earlier scheduled to continue from Monday to Wednesday but had to be postponed due to some reasons. In order to control the rising inflation, the Reserve Bank has started increasing the repo rate from May this year. Due to the increase in inflation, an emergency meeting of the Monetary Policy Committee (RBI MPC meeting) was called by the Reserve Bank in May.
In the meeting held in May 2022, the Reserve Bank had increased the repo rate by 0.40 percent. This was followed by a regular meeting of the Monetary Policy Committee in June the following month, in which the repo rate was increased by 0.50 percent. In May, the RBI changed the repo rate for the first time after nearly two years. For almost two years, the repo rate stood at only 4 per cent and now the repo rate has increased to 5.40 per cent.
There will be no relief from inflation for the time being
Regarding the rising inflation in the country, Reserve Bank Governor Shaktikanta Das said that people are facing high rates of inflation. The month of June was the sixth consecutive month when retail inflation exceeded the upper limit of the Reserve Bank and at present there is little hope of relief from inflation.