Thursday, August 11, 2022
BusinessRBI hikes interest rates again Home loan, car loan interest likely to...

RBI hikes interest rates again Home loan, car loan interest likely to rise

RBI was also expected to raise the interest rate accordingly.

New Delhi: RBI has raised interest rates again. RBI’s 3-day monetary policy meeting began on August 3. In this meeting chaired by Reserve Bank Governor Shaktikanta Das, the interest rate on loans to banks has been increased by 0.50 percent.

Central banks of various countries have been raising interest rates to keep rising inflation under control. For example, the United States continues to raise interest rates as inflation hits a 40-year high. Having already hiked interest rates twice, it recently hiked it again by 75 basis points. RBI was also expected to raise the interest rate accordingly.

As expected, the Reserve Bank has announced an increase in interest rates. RBI’s 3-day monetary policy meeting began on August 3. In this meeting chaired by Reserve Bank Governor Shaktikanta Das, the interest rate on loans to banks has been increased by 0.50 percent.

Also, announcements were made about the level of inflation and economic growth in this meeting. RBI Governor Shaktikanta Das said the yield on 10-year government bonds rose 10 basis points to 7.25 percent. Also, the increase in inflation necessitates a further reduction in cash flow. He said the repo rate will be hiked by 50 basis points.

This 0.50 per cent hike has left the repo rate at 5.4 per cent. RBI Governor Shaktikanta Das has also said that the country’s GDP growth forecast is 7.2 percent.

He said that consumer inflation will be 7.1 percent during the period from July to September. Consumer inflation is projected at 6.4 percent in October-December and 5.8 percent in January-March.

Earlier, when the RBI raised the repo rate, banks increased the interest rates on their home loans, mortgage loans, car loans, etc. In this case, as the repo interest rate has been increased again, there is a possibility of the interest rate for the loans provided by the banks increasing.

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Updated on August 11, 2022 4:04 pm