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Thursday, December 29, 2022

RBI gave a big blow to the common man, increased the repo rate by 0.35 percent, know what will be the effect on you

Amid rising inflation, the Reserve Bank of India has again increased the repo rate. RBI has increased the repo rate by 0.35% for the fifth time in a year. After this, now the repo rate has increased from 5.90% to 6.25%. After an increase of 35 basis points in the repo rate, all types of loans from banks will become costlier.

Giving information, RBI Governor Shaktikanta Das said that inflation still remains a matter of great concern. There was an increase of 0.35% in the repo rate, which has increased to 6.25%. The Standing Deposit Facility (SDF rate) has been adjusted to 6% and the Marginal Standing Facility (MSF rate) and the Bank Rate to 6.5%. At the same time, he said, the inflation rate is expected to be above 4% in the next 12 months.

How will the increase in the repo rate affect you?


The increase in the repo rate will have a direct impact on the loans received from banks. Loans from the Reserve Bank to other banks will get costlier and the banks will compensate for this from the customers. With the increase in the repo rate, interest rates on other loans like home, personal and car loans from banks will increase. The repo rate was increased by 0.4 per cent on May 4 this year, 0.5 per cent on June 8, 0.5 per cent on August 5 and 0.5 per cent on September 30 this year. Explain that the rate at which the loan is given by the RBI to the banks is the repo rate. It is obvious that if banks get loans at a higher rate, it will affect the customers as well.


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