RBI makes home loan rates costlier, 0.40 percent hike in repo rate

Pankaj Prasad
Pankaj Prasad 04/05/2022 15:15 IST
RBI, repo rate, Home loan EMI, RBI Governor Shaktikanta Das, home loan rates

Announcing the decision to increase the repo rate, RBI Governor Shaktikanta Das said that the situation of scarcity and volatility in commodities and financial markets is becoming more serious.

The Reserve Bank of India (RBI) has increased the policy interest rates (repo rate) in a sudden decision. The central bank has announced to increase the repo rate by about 0.40 percent for the time being. With this, the repo rate increased to about 4.40 percent. Home loans will become expensive after this step taken by the Reserve Bank.

After increasing the repo rate, Governor Shaktikanta Das said that inflation is increasing due to geopolitical tensions. Therefore, to control inflation, RBI has decided to increase the repo rate by 40 basis points in its regular policy review.

Announcing the decision to increase the repo rate, RBI Governor Shaktikanta Das said that the situation of scarcity and volatility in commodities and financial markets is becoming more serious. He said the central bank had announced its intention to withdraw the liberal stance.

Inflation rising due to geopolitical tensions

He said that the RBI decided to increase the standard interest rate by 40 basis points to 4.40 per cent in its regular policy review to control inflation. The RBI Governor said after the meeting of the Monetary Policy Committee held without a scheduled program that inflation is increasing due to geopolitical tensions.

Unanimous decision taken in MPC

Governor Shaktikanta Das has unanimously voted for an increase of 40 basis points in the repo rate by the Monetary Policy Committee (MPC) with immediate effect. He said that the motive behind increasing the repo rate is to strengthen and strengthen the economic growth prospects in the medium term. He said that the monetary stance remains soft. He said that the Reserve Bank has increased the cash reserve ratio by 0.5 percent to 4.50 percent, which will be applicable from May 21.

staggering global revival


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He said the global revival is staggering. Foreign exchange reserves remain at an all-time high of over $600 billion. GDP from loans is at a low level. He said the 7 per cent rise in headline consumer price index (CPI) based inflation in March 2022 was driven by food inflation. In the month of March, 9 out of 12 food subgroups registered an increase in inflation.

Category: Business

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#HomeloanEMI
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