Mumbai, First Published Jun 8, 2022, 10:33 AM IST
Reserve Bank of India (RBI) Governor Shaktikant Das today announced a 50-point hike in the repo rate on loans as the country’s inflation continues to rise.
As food, vegetable, petrol and diesel prices fell further, interest rates rose by another 50 points to control inflation.
Thus, the interest rate will increase to 4.90 per cent as the repo rate on loans has been raised by 50 points from the current 4.40 per cent.
This will further increase the EMI payments for home loan and auto loan borrowers.
In an interview with RBI Governor Sakthikantha Das on April 4, he said, “The interest rate on loans will continue to rise, but it is not clear how much it will rise. Inflation will rise until it is brought under control at 6 percent. ”
Inflation is expected to rise to 7.10 per cent in May on the back of sharp rise in tomato prices and lower petrol and diesel prices. The interest rate has been raised by 50 points for the second consecutive time to prevent this from happening in advance.
It has risen by 40 points in May, up from 50 points in June to a total of 90 points.
The Reserve Bank held a bi-monthly monetary policy meeting. The decision was announced by Reserve Bank Governor Shaktikant Das today. In it he said:
Everyone on the MBC board has unanimously decided to raise the repo rate by 50 points. This will increase the interest rate to 4.90 per cent.
The interest rate on fixed deposits has been hiked to 4.65 per cent and that on MSF banks, also known as final loan facility, to 5.515 per cent.
According to a report released by the National Bureau of Statistics on May 31, the country’s economic growth is projected to grow at 8.7 percent in fiscal 2021-22. This is the same level of growth as in 2019-20.
This year the monsoon will not be the big change that is normal. Crude oil prices in India are estimated at an average of $ 105 a barrel. Therefore, inflation is projected to be 6.7 percent in 2022-23.
Thus said Shaktikant Das
Last Updated Jun 8, 2022, 10:33 AM IST