Repo Rate: Home loan will be expensive again! RBI may increase interest rates by 25 basis points
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Mumbai : There is a very important news for home loan borrowers or people who are already paying home loan installments and that is that the Reserve Bank of India (RBI) may decide to increase the interest rates in the bi-monthly monetary policy review to be announced on 6 April. Is. The three-day meeting of the RBI Monetary Policy Committee (RBI MPC) has started on Monday and the results will be announced on Thursday. If media reports are to be believed, it is already being speculated that the country’s central bank may once again increase the policy interest rate repo rate.
Expectation of increase in repo rate
According to media reports, the three-day meeting of the Monetary Policy Committee (MPC), which decides the interest rate of the Reserve Bank of India (RBI), has started in Mumbai on Monday. It is being speculated that in the first bi-monthly monetary review meeting of the current financial year, the MCP may decide to increase the key policy interest rate repo rate by about 0.25 per cent or another 25 basis points.
The process of increasing interest rates will stop
However, economic analysts believe that with this, the process of increasing interest rates, which started from May 2022, will stop. Various domestic and global factors will be considered during the three-day meeting (April 3-6) of the Monetary Policy Committee chaired by RBI Governor Shaktikanta Das. After this, the first bi-monthly monetary policy of the financial year 2023-24 will be announced. What has the six-member committee decided on interest rates? Its results will be announced on Thursday by Shaktikanta Das.
2.5 percent increase in repo rate so far
To control the rising inflation in India, the central bank has increased the repo rate by about 2.5 percent since May 2022. Despite this, inflation has remained above the Reserve Bank’s comfortable level of 6 per cent for most of the time. The MPC will specifically consider the increase in retail inflation and the recent action taken by the central banks of developed countries. After remaining below 6 per cent in November and December 2022, retail inflation crossed the RBI’s comfortable level in January. In such a situation, the action of the central bank is necessary. Inflation based on the Consumer Price Index (CPI) was 6.52 per cent in January and 6.44 per cent in February.
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