RBI will hike repo rate by 50 bps for the third time in a row

RBI will hike repo rate by 50 bps for the third time in a row

RBI hikes repo rate: The Reserve Bank of India has finally increased the repo rate. RBI Governor Shaktikanta Das announced the credit policy of RBI in a press conference. RBI has increased the repo rate by 50 bps point i.e. 0.50 percent. With this, the common man will now have to face EMI hike in the festive season. Apart from this, new loans have also become expensive. After the increase in the interest rate of RBI, now the interest rate has gone up to 5.90 percent.

>> 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.

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