EMI will increase dramatically, inflation and growth projections for FY 23 have been realistic. Earlier, it was increased by 40 basis points in May and 50 points in June.
Monetary policy was reviewed by the Reserve Bank of India (RBI) in a 3-day meeting of the Monetary Policy Committee. On Friday, the RBI increased the repo rate by 50 basis points to 5.4 percent. This step was taken to curb the ever-increasing inflation and inflation in the country. Repo rate has increased by 1.40 percent since May.The third consecutive hike in the repo rate will make home loans, car loans and personal loans more expensive and lead to a steep rise in EMI paid by individuals. For 20 years Rs. 30 lakh home loan, he now has an EMI of around Rs. 900 more will have to be paid. With this increase, interest rates have now reached August 2019 levels.
With the increase in repo rate, the interest rate of home loan, car loan and personal loan given by banks will also increase. Hence the individual has to pay higher interest rate for the loan. Due to which the loan installment payment i.e. EMI will increase. A person who for 20 years Rs. 30 lakh home loan, he now has an EMI of around Rs. 900 more. First he paid Rs. 7.55 per cent. 24260 EMI has now increased to 8.05% article to Rs. 25,187 will be.
Interest rate hike thrice this year.
During the current financial year, the Reserve Bank has so far changed the report three times. In May, the repo rate was increased by 0.40 percent to 4.40 percent. After that, the report was increased again in the month of January. At that time the repo rate was increased from 4.40 percent to 4.90 percent and now it has been increased again by 0.50 percent to 5.40 percent.
Estimates of Kugawa in 2022-23.
Inflation is expected to be 6.7 percent in 2022-23. Which may be 5 percent in the first quarter in 2023-24.
Estimation of growth rate
Real growth rate is estimated at 7.2 percent in FY 23, which is expected to be 16.2 percent in the first quarter, 6.2 percent in the second quarter, 4.1 percent in the third and 4 percent in the fourth quarter. GDP growth in the first quarter of 2023-24 could be 6.7 percent.
Report - What is reverse report?
Reported interest is the rate at which commercial banks borrow money from RBI by selling their securities. Whereas the reverse repo rate is the rate of interest at which the Reserve Bank borrows money from other banks. It is increased or decreased as needed to increase credit and investment in business industries and recovery of the economy.
Important findings of RBI...
🔹Increase in repo rate by 50 basis points. Now 5.40 percent,
🔹Real GDP growth forecast unchanged at 7.2 percent in FY 23,
🔹Inflation expected to be 6.7 percent in FY 23
🔹Current account deficit is not at an alarming level.
🔹Indian economy was affected by inflation and price hike.
🔹Rising inflation and price hikes at the global level are worrisome
🔹The MPC meeting emphasized on withdrawing excess money circulating in the market,
🔹Inflation decreased compared to April.
🔹Improvement in urban demand
🔹Oil prices fell due to increased supply.
🔹Credit growth of banks will increase at the rate of 14 percent annually.
🔹A good monsoon will boost demand at the rural level
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