RBI may increase repo rate in April also, loan is not expected to be cheaper in 2023
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Mumbai : If you have taken home loan, car loan, personal loan or education loan from any bank in India, then there is very important news for you. That is, even in the current year 2023, the loan and loan EMI is not expected to be cheap. The Reserve Bank of India (RBI) has just increased the policy interest rate repo rate by 0.25 percent or 25 basis points (basis points) on Wednesday, February 8 itself. RBI has increased the repo rate to 6.50 percent from May 2022 till now. If market analysts are to be believed, then in view of rising inflation, RBI may increase the repo rate by 0.25 percent in April as well. They say that the RBI, which is on the trend of increasing the policy interest rate, can also increase the repo rate by another 0.25 percent in the next monetary review proposed in April.
Increase in interest rate to control inflation
HDFC Bank Chief Economist Abheek Baruah said that during the April policy review, the repo rate is expected to increase by 0.25 percent. The reason for this is said to be that the RBI seems to be maintaining its stance of controlling core inflation. Baruah said that despite overall inflation remaining moderate for the next few months, core inflation may persist and the RBI may increase the policy rate repo rate by 0.25 per cent to control it.
There is currently no break on the increase in the repo rate
Suman Chaudhary, Chief Analysis Officer of Acute Ratings, also believes that there are no signs of stopping the increase in the policy rate repo rate. However, India Rating’s chief economist Sunil Sinha said that RBI will not increase the policy rate repo now, but will not think of reducing it at all. This means that it is likely to remain at least at the current level in the near future.
It is necessary to get out of the influence of the Federal Reserve
SBI Group Chief Economist Soumya Kanti Ghosh said that it is necessary for the RBI to come out of the influence of the Federal Reserve and this will be clear from the April policy review. He said that the monetary policy of any country should be decided by its needs. Explain that RBI is trying to control inflation through increase in repo rate and that is why the repo rate is being increased.
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