Repo rate increased for the sixth consecutive time, now more EMI will have to be given on all loans
The Reserve Bank of India (RBI) has increased the repo rate by 0.25 percent. Now the repo rate has been increased from 6.25% to 6.50%. RBI has increased the repo rate for the sixth time in a row. After this, from home loan to auto and personal loan will become costlier and more EMI will have to be paid.
RBI Governor Shaktikanta Das made this announcement on Wednesday morning. He said that during the last three years, due to the global situation, banks across the world had to take a decision to increase the interest rates. These tough decisions were necessary to control inflation.
The RBI governor said the global economic outlook is not as grim as it was a few months ago, with growth prospects improving in major economies, while inflation has declined. However, inflation still remains above target in major economies.
This change in the repo rate took place after 22 May 2020. After this, in the meeting held on 6 to 8 June, the repo rate was increased by 0.50%. This increased the repo rate from 4.40% to 4.90%. Then in August it was increased by 0.50%, taking it to 5.40%. Interest rates went up to 5.90% in September. Then in December the interest rates reached 6.25%. Now the interest rates have reached 6.50%.
