Four Years Later, The RBI Has Increased The Repo Rate By 0.25%, Borrowing Expensive

Rudra Investment Share Market Expert says The Reserve Bank on Wednesday raised interest rates for the first time in four years. The Reserve Bank has increased the repo rate by 0.25 percent to 6.25 percent.

The reverse repo rate increased by 4 percent to 6 percent. Increasing the repo rate would lead to costly borrowing. In the coming days home loan, auto loan and personal loan can increase the EMI. Reserve Bank has increased the repo rate for the first time since January 2014.

First time the repo rate in Modi government increases

This is the first time in the Modi government's tenure when the Reserve Bank has increased the repo rate. The MPC meeting, which is headed by RBI governor Urjit Patel, has been for 3 days for the first time. It has been two days before. The meeting of the six-member Monetary Policy Committee (MPC), under the leadership of RBI governor Urjit Patel, started on June 4.

These factors were giving rise to signs of increasing rates

In the fourth quarter of the fiscal year 2018, the GDP growth of the country has been 7.7 percent, while overall financial growth has been 6.7 percent. Knowledgeable people are looking at it as a return to the Ikannomi Rath.

At the same time, crude prices in the international market are close to $ 78. Retail inflation remained above 4 percent since November 2017. At the same time, among the signs of tight monetary policy, some banks including SBI, PNB and ICICI Bank raised lending rates from June 1. At the same time, some banks have increased deposit rates too.

RBI raises rates to boost rates

RBI deputy governor Viral Acharya had indicated the increase in the repo rate in June monetary policy. According to the minutes of the meeting of the Monitor Policy Committee (MPC) of April, RBI Deputy Governor Vilal Acharya favoured returning the rate of interest rates in the next policy review on June 4-6.

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