August 5, the Reserve Bank of India has published it's monetary policy. What significant adjustments will the governor of the RBI make this time that will affect the lives of the average person? On Friday, August 5, Reserve Bank Governor Shaktikanta Das raised the repo rate by 50 basis points. As a result, the repo rate rose to 5.40 percent. After the repo rate increased by 0.50 percent, MSF rose from 5.15 to 5.65 percent.
According to the rbi, the core inflation rate is anticipated to stay high. Inflation has decreased compared to April, though. Demand in cities is getting better. Rural demand is progressively increasing. The RBI also stated that there is a boom in investment along with this. Indeed, there has already been speculation that the RBI will raise the repo rate, which will directly affect the EMI. And thereby it’s safe to say that the general public wallet has to suffer once again.
Customers will bear the cost of this increase in the repo rate through the banks. Your monthly loan payment will go up as a consequence. The payments for personal loans, auto loans, and home loans will all go up subsequently. If you have a home loan for Rs 30 lakh with a 20-year term, your instalment will rise from Rs 24,168 to Rs 25,093.
Anyone paying an EMI for a personal loan or a house loan will be directly impacted by rising interest rates. In addition, people who have future plans to purchase a house or a car would undoubtedly have to deal with higher EMIs.