Home Loan Interest Rates: Soon there may be another hit of inflation on the general public. In fact, according to a report, it is being said that the EMI is going to increase next week. In such a situation, know how much will be the increase.
Soon there may be another hit of inflation on the general public. There may be an increase in their loan EMI. Also, interest rates on loans can increase on all types of loans including home loan, personal loan, car loan. The Reserve Bank of India (RBI) may decide to increase the repo rate by another 0.25 per cent in the monetary review to be held next week.
The RBI may take this decision amidst retail inflation remaining above a satisfactory level of six per cent and the aggressive stance of several central banks including the US Federal Reserve.
This could be the last rate hike
RBI has been increasing interest rates continuously since May 2022. The rate hike in this review may be the last. The bi-monthly review meeting of the Monetary Policy Committee (MPC) of the Reserve Bank is going to start from April 3. The three-day meeting will end on April 6 with a decision on the policy rate.
Repo rate increased from 4 to 6.50%-
In order to control inflation, RBI has adopted the stance of increasing the policy interest rate continuously from May 2022. During this, the repo rate has increased from 4 per cent to 6.50 per cent. The repo rate was also increased by 0.25 per cent in the last MPC meeting held in February.
The decision will be taken keeping in mind all the domestic and global aspects.
In the MPC meeting, a decision will be taken after a comprehensive review of all domestic and international aspects related to monetary policy. During this period, the situation of high retail inflation and the recent steps of central banks of developed countries – US Federal Reserve, European Central Bank and Bank of England will also be analysed.
Inflation is above a satisfactory level
Consumer Price Index (CPI) based inflation stood at 6.52 per cent in January and 6.44 per cent in February. This level of retail inflation is higher than the RBI’s comfortable level of six per cent. Saugata Bhattacharya, chief economist at Axis Bank, told reporters recently, “I expect one more last rate hike of 0.25 per cent.”
There can be an increase of 0.25 percent-
Madan Sabnavis, Chief Economist, Bank of Baroda said, “With inflation remaining above six per cent for the last two months and liquidity now almost neutral, it is expected that the RBI will once again hike the repo rate by 0.25 per cent.” Can do.
Along with this, by declaring its stance as neutral, RBI can also indicate that the phase of rate hike is over. Overall, in the entire financial year 2023-24, RBI will organize a total of six MPC meetings. The central government has tasked the RBI to ensure that retail inflation remains within the range of 4 per cent (up or down 2 per cent).
