Mumbai The Reserve Bank of India (RBI) has announced interest rates in its latest monetary policy (MPC). RBI Governor Shaktikanta Das announced the new monetary policy after the conclusion of the MPC meeting on August 8. RBI has kept the repo rate at 6.5% as before. Due to this, you are not going to get any relief on the EMI of your loan at the moment. Apart from this, more decisions were also taken to contain inflation and increase the growth rate.
The Reserve Bank had increased the repo rate six times in the last financial year i.e. 2022-23. Due to the continuous increase in the repo rate by the RBI at different times, it jumped from 2.5 to 4 to 6.5 percent. Earlier, twice in the monetary policy of the current financial year, RBI did not make any change in the interest rates. In the MPC of RBI, the repo rate was kept at 6.5 per cent in April and June. Due to this, the borrowers did not get any relief in EMI. Actually the reason for this is inflation. The target of inflation has been fixed by RBI at 5 percent, but for a long time the rate of inflation was going much above the fixed limit.
The continuation of the war between Ukraine and Russia also led to a sharp increase in inflation. Because of this, there was a lot of pressure on the European countries and especially on America helping Ukraine. In such a situation, the Federal Reserve of America continuously increased the interest rates. Because of this, like the currencies of other countries, the Indian rupee also came under pressure. The value of rupee has gone up a lot i.e. more than 80 against the US dollar. Because of this also, the Reserve Bank had decided not to make any reduction in the repo rate. Repo rate is actually the rate at which RBI lends to banks. When the repo rate increases, the amount in the hands of the common people along with the banks decreases. This makes it easy to control inflation.