Delhi: With the RBI’s financial management report to be released tomorrow, the question has arisen whether the interest rate will rise. The rise in interest rates on short-term loans is expected to be modest as the inflation rate has fallen. Most economists have predicted that the RBI may raise the bank interest rate by 0.35 percent. 3 economists have predicted a rate hike of 0.25 per cent and only one has suggested it could be as high as 0.5 per cent. The US Federal Reserve is also expected to raise interest rates modestly. It is expected that there will be an increase in interest rates in India as well.
Meanwhile, there are reports that the repo rate may be increased by another 35 basis points in the Reserve Bank’s monetary policy meeting from yesterday (December 5) to December 7. If the RBI hikes by 35 basis points, the repo rate will increase to 6.25 points. As this will be reflected in the monthly installments of personal loans, car loans and home loans received by common people from banks, there is a risk that the repo rate will become a direct burden on the public.