RBI has hiked the repo rate 6 times since May 2022 to control inflation in India. With this, the repo rate is 6.50 percent. The RBI monetary policy meeting is scheduled to take place on april 3-6. In this situation, a few days ago, the US central bank raised its benchmark interest rate, focusing on inflation and unemployment levels. What is going to happen is what the RBI governor Shakti Kanthadas-led MPC will decide in this meeting, from the common man to the business sector.
While the Reserve bank has increased the repo rate 6 times since May 2022 and it is currently 6.50 percent, it is predicted that the interest rate will be increased by 0.25 percent again in the april meeting. In this situation, if the interest rate is increased once again, the interest rate will increase for everything from home loans, personal loans, car loans, bike loans, corporate loans, startup loans, and gold loans. If banks increase the interest rate on loans, not only the new borrowers but also the interest rate of the existing borrowers will increase and the EMI amount will increase. This will create a huge impact and impact on people's financial savings.The RBI limit for India's inflation should be around 6 percent, but it was 6.52 percent in january and 6.44 percent in February. As a result, the repo rate will increase by 0.25 percent at the RBI monetary policy meeting on april 3-6 and 49 out of 62 people in the Reuters poll predicted that the interest rate will be hiked. Similarly, it is expected that the interest rate will not be hiked for the rest of the fiscal year after this hike. It has been reported that there is also a bank. It is also expected that the cost of imported goods will decrease significantly as the dominance of the dollar decreases.