RBI MPC Meet Today: Inflation has reached its peak across the country. In such a situation, many efforts are being made to reduce it. RBI’s Monetary Policy Meeting will start today i.e. on Monday. This meeting will last for 3 days. On Wednesday, the Reserve Bank of India will announce an increase or cut in policy rates. Experts believe that in this meeting, Governor Shaktikanta Das will increase interest rates by 40 basis points.
RBI MPC Meet Today: EMI can be expensive
RBI can once again increase the policy interest rates. The effect of this will be that the EMI of the loan can become expensive once more. If you have already taken a loan, then your EMI will increase and you will have to pay more interest even if you are planning to take the loan further.
Banks also increase loan rates
Let us tell you that after increasing the repo rates by RBI, all private and government sector banks increase the interest rates of loans, which directly affects the general public.
Rates were also increased in the last meeting
The central bank had hiked the repo rate by 0.40 per cent in the meeting of the Monetary Policy Committee (MPC) held without a schedule last month. After the monetary policy meeting on May 4, the RBI suddenly increased the repo rate by 40 basis points to 4.40 percent and the cash reserve ratio by 50 basis points from 4 percent to 4.50 percent.
EMI became expensive due to increase in rates last time
RBI announced a 40 basis point increase in the repo rate on May 4, since then, from public-private banks to housing finance companies, from home loans to other types of loans are becoming costlier. So the EMI of the customers who have already taken loan is getting expensive. And the process of EMI becoming expensive is not going to stop here. After the meeting of the Monetary Policy Committee in June, the borrowers may again get a setback.
Inflation at 8-year record high
Retail inflation rose for the seventh consecutive month in April to an eight-year high of 7.79 per cent. The main reason for this is the rise in commodity prices, including fuel, due to the Ukraine-Russia war. Inflation based on wholesale prices has remained in double digits for 13 months and touched a record high of 15.08 per cent in April.