RBI meeting: The decision of RBI’s monetary policy meeting will be announced today. of RBI RBI Governor Shaktikanta Das will announce monetary policy at 10 am today at a press conference. RBI may increase the repo rate by 0.50 percent today. The increase in interest rates will also make loans costlier.
Banks of other countries including America have also increased interest rates. Therefore, RBI is also likely to increase the interest rate. The stock market has been declining for the last few days. Many people must have seen how the market is reacting to the RBI’s decision. The US stock market fell sharply after the Federal Reserve raised interest rates.
If RBI hikes the interest rate today, it will be the fourth consecutive rate hike. RBI has hiked interest rates from May. To control inflation, RBI has increased the repo rate by 1.40 percent since May. Due to this the repo rate has increased from 4 per cent to 5.40 per cent. Hence the increased EMI
Efforts are on by RBI to bring down the rate of inflation below 6 percent. However, inflation has not been controlled yet. On the other hand, there is a big decline against the dollar. Due to this there is a fear of rising inflation. The RBI meeting is important in this background.
>> What is Repo Rate?
The rate at which banks borrow money from the Reserve Bank is called the repo rate. An increase in the repo rate means an increase in the lending rate that banks get from the Reserve Bank. In such a situation, a reduction in the repo rate means cheaper money for the bank. That is, if the RBI increases the repo rate, then the debt of the general public increases.
>> What is Reverse Repo Rate?
Reverse repo rate is the opposite concept of repo rate. Banks deposit money with the Reserve Bank. The interest they get on this is called reverse repo rate. The difference between repo rate and reverse interest rate is half to one percent.
Other important news:
