Mumbai If you have taken a loan, then its EMI is going to increase further. This is going to happen because of the change in policy rates by the Reserve Bank. Reserve Bank Governor Shaktikanta Das has increased the repo rate by 0.50 percent after reviewing the monetary policy. Earlier in May, the Reserve Bank had increased the repo rate by 0.40 percent. After increasing the latest rate, the repo rate has gone up to 4.90 percent. Because of this, the EMI of your loan is also going to increase. Earlier yesterday, some banks including HDFC had announced to increase the interest rates on loans. Now the rest of the banks are also going on the same path.
Shaktikanta Das said that this time the repo rate is being increased by 50 basis points i.e. 0.50 percent by the Reserve Bank. This is the rate at which the Reserve Bank gives loans to banks. When the bank has less money, they will compensate it by increasing your EMI. If your home loan is running, they will have to pay a higher EMI. However, after today’s announcement, those who will make FD in the bank, they will get its interest rate also higher. Even before the announcement by the Reserve Bank, the stock market started falling, anticipating it. At the same time, the value of rupee increased against the dollar.
The Reserve Bank has increased the repo rate twice in a row because the rate of inflation has increased significantly. Inflation has reached an eight-year high of 7.79 percent. Inflation is also at its peak due to the war between Russia and Ukraine and the increase in the price of crude oil. Wholesale-based inflation had crossed 15 per cent in April after 13 months. The Reserve Bank Governor had said recently that he would increase the repo rate.