Mumbai: As repo interest rate has gone up by 0.35 percent, interest on home, auto and personal loans is likely to increase further.
The Reserve Bank conducts the Fiscal Policy Committee review meeting once in 2 years and takes various policy decisions including interest rates. In that regard, the Financial Policy Committee meeting chaired by RBI Governor Shaktikanta Das was held yesterday. In this meeting, various aspects including rising inflation and rising prices of the country were discussed.
It was decided to increase the repo interest rate for banks. In this regard, RBI Governor Shaktikanta Das said:- Repo interest rate for banks is increased by 0.35 percent. With this, the short-term loan interest rate of banks has been increased from 5.9 percent to 6.25 percent. This is effective immediately. To control the rising inflation of the country, the loan interest given to the banks is increased.
There is an uncertain economic situation at the global level. Food shortages, rising fuel prices are affecting. Inflation in the current year will be 6.8 percent. Indian economy is currently recovering. We can see that India has progressed from a dark world to a bright place. India’s GDP growth has increased to 6.9 percent from 6.5 percent. India is the fastest growing economy in the world. This is what he said.
Due to the increase in repo interest, there is an opportunity to increase the installment amount for home, vehicle and personal loans. There is also a possibility of increasing the interest on the deposit amount of the customer. It is noteworthy that the repo interest rate has been raised 5 times this year alone.