Financial instability is increasing all over the world. In this situation, the apex bank has increased the repo rate at a huge rate in the last few rounds to deal with the inflation.
Mumbai : The central bank made the decision to keep the repo rate unchanged at 6.5 percent in the June policy for the second consecutive meeting. This decision was influenced by the notable correction in the Consumer Price Index (CPI) inflation trajectory. The Reserve Bank of India's Monetary Policy Committee (MPC) of the meeting on Thursday decided to keep the repo rate unchanged. As a result, the borrowers of different banks of the country will get some relief. After the meeting of the MPC, the RBI said that the repo rate is being kept at 6.5% as before. Which is a bit unexpected. Experts were of the opinion that this time the repo rate will be increased by at least 25 basis points. But keeping in mind the banks and borrowers, the Reserve Bank (RBI) has decided to keep the repo rate unchanged for the time being.
Financial instability is increasing all over the world. In this situation, the apex bank has increased the repo rate at a huge rate in the last few rounds to deal with the inflation. Earlier, the repo rate increased by 25 basis points in February. The repo rate was hiked by 40 basis points in May. Later in June it increased again by 50 basis points. In all, the repo rate has increased by 250 basis points since May last year. However, it was not extended in the first quarter of FY 2023-24. The second trimester was also not extended. Earlier, due to continuous increase in repo rate, overall from businessmen to borrowers, everyone had to face problems. The financial pressure was increasing on the common people while reining in the price rise. Interest rates on home, car loans were also rising steadily. The Reserve Bank gave some pause to that pain. EMI is unlikely to increase for now.
However, despite keeping the repo rate unchanged, the central bank could not hear any good news about the price hike. RBI Governor Shaktikanta Das said that the inflation index is still much higher than the set target of 4 percent. The inflation target for next year was also lowered to 5.2 to 5.1 percent.
Mumbai : The central bank made the decision to keep the repo rate unchanged at 6.5 percent in the June policy for the second consecutive meeting. This decision was influenced by the notable correction in the Consumer Price Index (CPI) inflation trajectory. The Reserve Bank of India's Monetary Policy Committee (MPC) of the meeting on Thursday decided to keep the repo rate unchanged. As a result, the borrowers of different banks of the country will get some relief. After the meeting of the MPC, the RBI said that the repo rate is being kept at 6.5% as before. Which is a bit unexpected. Experts were of the opinion that this time the repo rate will be increased by at least 25 basis points. But keeping in mind the banks and borrowers, the Reserve Bank (RBI) has decided to keep the repo rate unchanged for the time being.
Financial instability is increasing all over the world. In this situation, the apex bank has increased the repo rate at a huge rate in the last few rounds to deal with the inflation. Earlier, the repo rate increased by 25 basis points in February. The repo rate was hiked by 40 basis points in May. Later in June it increased again by 50 basis points. In all, the repo rate has increased by 250 basis points since May last year. However, it was not extended in the first quarter of FY 2023-24. The second trimester was also not extended. Earlier, due to continuous increase in repo rate, overall from businessmen to borrowers, everyone had to face problems. The financial pressure was increasing on the common people while reining in the price rise. Interest rates on home, car loans were also rising steadily. The Reserve Bank gave some pause to that pain. EMI is unlikely to increase for now.
However, despite keeping the repo rate unchanged, the central bank could not hear any good news about the price hike. RBI Governor Shaktikanta Das said that the inflation index is still much higher than the set target of 4 percent. The inflation target for next year was also lowered to 5.2 to 5.1 percent.
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