Winning Bizness Desk

Mumbai. The Reserve Bank of India has given relief to common people. As inflation is coming under control, RBI has decided not to change the repo rate. It has been decided not to change the Repo Rate. RBI Governor Shaktikanta Das has said that the Central Bank has decided to maintain the repo rate as the same. So your loan installment will not increase. While announcing this, the RBI Governor said that since inflation is coming under control, it has been decided not to change the repo rate of RBI. Currently RBI repo rate is 6.50 percent. The last hike in the repo rate was on February 8, 2023. In the backdrop of inflation, the central bank of the country still faces many challenges," Das said, adding that our work is not over yet. We will have to work tirelessly until the inflation rate comes close to or below the target set by the RBI."

Repo rate hiked 6 times in 8 meetings

The central bank has held eight meetings of the credit policy committee. Repo rate has been increased in six of these eight meetings. This process started in May last year. Then RBI's repo rate was four percent and now RBI's repo rate has reached six and a half percent (6.5 %). RBI Governor Shaktikanta Das says that this decision has been taken keeping in view the growing global crisis.

What is repo rate?

The rate at which banks borrow money from the Reserve Bank is called Repo Rate. An increase in the repo rate means an increase in the lending rate that banks get from the Reserve Bank. So, reduction in repo rate means cheaper money for the bank. This means that if the RBI increases the repo rate, the debt of the general public increases. Due to increase in repo rate, loan terms also become more expensive. This will increase the EMI if you have taken a floating rate home loan or any other loan. On the other hand, after an increase in the repo rate, banks may offer more interest on other deposits including FDs, i.e. the deposit rates may increase.