RBI Monetary Policy Highlights: Repo rate up 50 bps to 5.9% and growth forecast down to 7% for 2022-23.
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RBI Monetary Policy Meeting Highlights: RBI Governor Shaktikanta Das announced that the monetary policy committee (MPC) hiked the repo rate by 50 bps to 5.90% and added that inflation is expected to remain elevated at around 6 per cent in second half of 2022-23. The central bank also cut growth forecast for the current financial year to 7 per cent. Here’s what the Indian central bank chief announced.
RBI on Indian Rupee
RBI governor said that Indian Rupee has fallen 7.4% v/s the US dollar from April 2022. As per them, the currency has depreciated in an orderly manner and has fared much better than several other currencies. The governor said that the Rupee is a freely floating currency, and the RBI doesn’t have a fixed exchange rate in mind.
The central bank intervenes to adjust only volatility in the market and the intervention is based on evolving situations, and the forward guidance may destabilize capital markets.
Your home loan equated monthly installments (EMIs) are set to go up after the Reserve Bank of India increased its key lending rate – repo rate by 50 basis points to a three-year high of 5.9 per cent on Friday.
The rate hike by the central bank came to tame the inflation which has been trending above its tolerance level of 6 per cent for the eighth month in a row.
Loan EMIs Set To Increase more
The rate hike will immediately affect those who have taken loans on a floating rate basis and are tied to an external benchmark, those pegged to other benchmarks would follow soon after Your home loan equated monthly installments (EMIs) are set to go up after the Reserve Bank of India increased its key lending rate – repo rate by 50 basis points to a three-year high of 5.9 per cent on Friday.
The rate hike by the central bank came to tame the inflation which has been trending above its tolerance level of 6 per cent for the eighth month in a row.