The repo rate was increased by 50 basis points and the interest rate was increased from 4.90 per cent to 5.40 per cent. Overall, the repo rate has been increased by 1.9 percent so far in 2022-23.
New Delhi. The Reserve Bank of India on Friday increased the repo rate from 0.5 per cent to 5.9 per cent to control inflation. In the 5th monetary policy review of the current financial year, the repo rate rate has been increased for the fourth time in a row. Earlier in August, the repo rate was increased by 50 basis points and the interest rate was increased from 4.90 percent to 5.40 percent.
Overall, the repo rate has been increased by 1.9 percent so far in 2022-23. We are going to tell 10 big things of the monetary policy review meeting, which are very important for you to know.
1. This is the fourth time the policy rate has been increased. Since May till now, RBI has increased the repo rate by 1.90 percent. The special thing is that now the repo rate has exceeded the level before the corona epidemic. In August 2019, the repo rate stood at 5.4 per cent.
2. The increase in the repo rate of the central bank will have a direct effect on the common people. After the increase in the repo rate, the bank will also increase its interest rates. This will make it expensive to take home loan and car loan from the bank.
3. After the decision of the Reserve Bank of India to increase the repo rate, now other public and private banks in the country can soon announce to increase the rate of interest to the customers on fixed deposits. People will benefit from this decision.
4. After the increase in the repo rate, personal and education loan borrowers will also be affected. After this, to take the loan, now more interest will have to be paid. The loan installment will be higher.
5. Central bank governor Shaktikanta Das has projected India’s GDP to grow at 7 per cent for FY23. RBI also told about its estimate for every quarter. A growth rate of 6.3 percent has been seen in the second quarter of FY23.
6. Liquidity position still better Inflation is expected to remain at 6% in the second half. Monitor and liquidity position is improving. There is a gradual improvement in rural demand. The investment situation is also showing improvement.
7. There has been a rapid increase in bank credit. Kharif sowing is 1.7% more than the normal level. The strength of the dollar has had an impact on the currency of the world, although the position of the rupee is better than other currencies. RBI keeps watch on currency volatility
8. Foreign exchange reserves of $ 53,750 million are left in India. Forex reserve has come down to the lowest level since AUG 2020. The change in valuation has reduced FX reserves by 67%. FX reserves have declined as US bond yields and dollar rise.
9. The Governor said that the Standing Deposit Facility and Marginal Standing Facility rate have also been increased. Now the Standing Deposit facility rate is 5.65% and the Marginal Standing Facility rate is 6.15%.
10. The three-day meeting of the Monetary Policy Committee (MPC) started on 28 September and today gave its decision on the RBI repo rate on 30 September.
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