Mumbai Your loan EMI is going to increase once again. The Reserve Bank (RBI) has increased the repo rate once again. RBI has announced to increase the repo rate by 0.25 percent after reviewing the monetary policy. The increase in the repo rate will reduce the amount with the banks. Because of this, they may be forced to decide to increase the EMI rate on the loan. RBI has increased the repo rate in the past as well and every time the banks decided to increase the EMI on the loan.
The increase in the repo rate was announced by RBI Governor Shaktikanta Das. With this increase, the repo rate now stands at 6.50 per cent. According to the RBI governor, the decision to increase the repo rate was taken by those reviewing the monetary policy to keep inflation under control. The decision to increase the repo rate has been taken unanimously by the board. 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 had indicated to increase the repo rate once again. Now the Federal Reserve has said that it may increase interest rates further. Obviously, there are high chances of your loan EMI increasing in the future as well.