The repo rate has increased from 5.40 to 5.90 per cent
Reserve Bank of India (RBI) has increased the repo rate by 50 basis points. With this, your EMI will also become expensive. On Friday, the repo rate has increased from 5.40 to 5.90 per cent, while the rate of SDF has increased from 5.15 to 5.65 per cent.
5 out of 6 MPC members were in favor of increasing the rates. RBI said that inflation still remains a matter of concern for all sectors. Earlier, many major central banks of the world, including the US Federal Reserve, have increased the interest rate.
Earlier, on the basis of the recommendations of the MPC, the RBI had announced an increase of per cent in the repo rate twice in June and August. Earlier in May, the central bank suddenly increased the interest rate by 0.40 per cent. According to this, the repo rate has increased by 1.40 per cent since May.
An increase in the repo rate will increase the cost of borrowing. If banks find money expensive, then loans will become more expensive in the coming time. Banks will pass this effect on the customers. This is expected to increase the sale of houses further.