The general public felt the shock of inflation, the EMI of the loan would increase, RBI increased the repo rate
The August 2022 meeting of the Reserve Bank’s Monetary Policy Committee (RBI MPC) concluded today, Friday. After the three-day meeting going on from Wednesday, at 10 am today, Reserve Bank Governor Shaktikanta Das said that this time it has been decided to increase the repo rate by 0.50 percent. With this, the repo rate has increased by 1.40 percent in the last four months. Now its effect will be seen on the EMI of people from home loan to personal loan.
Third hike in 4 months
This meeting of the Monetary Policy Committee of the Reserve Bank was earlier to be held from Monday to Wednesday, but due to some reasons it had to be postponed. To control inflation, the Reserve Bank has started increasing the repo rate from May this year. The Reserve Bank had called an emergency meeting of the Monetary Policy Committee (RBI MPC) in May. Due to rising inflation, the Reserve Bank had to do this. In the meeting of May 2022, the Reserve Bank had increased the repo rate by 0.40 percent. After that a regular meeting of the Monetary Policy Committee was held in the month of June, in which the repo rate was increased by 0.50 percent. RBI changed the repo rate in May for the first time in almost two years. For almost two years, the repo rate was only 4 per cent. Now the repo rate has increased to 5.40 percent.
Due to this the repo rate had to be increased
Despite the efforts of the government and the Reserve Bank, inflation has been controlled, but on the other hand, the central banks of many countries, including the US Central Bank Federal Reserve, are aggressively raising interest rates. The Federal Reserve continues to raise interest rates due to historical inflation in the US. The Bank of England also this week announced its biggest interest rate hike in a record 27 years (0.50 percent). This led almost all analysts to believe that the repo rate would increase. Most analysts expect the Reserve Bank to increase the repo rate from 0.35 per cent to 0.50 per cent this time.
No relief from inflation at the moment
Reserve Bank Governor Shaktikanta Das said that inflation is at a record level across the world. India is facing high rate of inflation. June was the sixth consecutive month that retail inflation exceeded the Reserve Bank’s upper limit. Relief on the inflation front amid sharp turn in geopolitical developments, softening global food prices, resumption of wheat exports from Ukraine, softening edible oil prices in the domestic market and pick-up in kharif sowing on the back of a good monsoon. can. In the near future. However, even after this, the retail inflation rate is likely to remain high.
foreign investors withdrawing so much money
The RBI governor said that in the past few months, emerging markets, including India, have faced sell-offs by foreign investors. He said that in this financial year till August 03, foreign investors have withdrawn $13.3 billion. Governor Das said that after considering all the factors, the Monetary Policy Committee unanimously decided to increase the repo rate by 0.50 percent to 5.40 percent. Similarly, it was also decided to increase the MSF and Bank Rate to 5.65 per cent.