RBI: Report including rising interest rates and home loans will also increase
RBI has made it clear that it is the right time to increase interest rates. RBI Governor Shaktikanta Das said that inflation is the biggest concern of today and at the same time it is necessary to increase the repo rate to check it.
The meeting was held in June
Excerpts from RBI’s MPC meeting were released in the first week of June and RBI said that inflation is getting out of hand. There was no way to bring it down except by raising interest rates. He said that it has been told in the MPC minutes that this is the right time to increase the interest rates. Along with controlling inflation, giving momentum to the economy has also been a challenge. Because of this they raised interest rates.
Report increased by 0.90 percent in 1 month
To keep inflation under control, the Reserve Bank of India (RBI) has increased the loan. This is because the results of the MPC meeting held on June 8 showed an increase of 0.50 per cent in the report. Exactly a month ago, Governor Das had held a surprise press conference and reported a 0.40 per cent increase in the report. In the same month, interest rates on loans increased by 0.90 per cent.
Inflation forecast also increased to 2.20 percent
Many changes have been made in the Reserve Bank regarding inflation, which can be gauged from the decisions of the MPC meeting. RBI has raised the retail inflation forecast for the current year to 6.7 per cent from 2.20 per cent. He believes that with all the efforts, inflation will not come below 6 percent. Inflation in May was 7.04 per cent. It was at an 8-year high of 7.79 per cent in April. RBI has retained the growth forecast for the current year at 7.2 per cent.
everything depends on inflation
MPC member Michael Patra says RBI’s decision will largely depend on inflation, which is expected to happen in the third or fourth quarter and retail inflation may come down. If the other 6 demands of the current financial year are relieved from inflation, then the increase in interest rates may stop. However, MPC members have indicated that the report may go up once again in the August meeting. If the repo rate is hiked again in the August MPC meeting. In the August MPC meeting, the repo rate may increase again and this may increase the debt burden on the common man. New borrowers will have to pay higher MI on all loans including home loans, auto loans and personal loans. This increase in interest rates is likely to last forever.