RBI Repo Rate Hike Likely: Interest rates are likely to rise again. Your home loan EMIs may get more expensive. In fact, in the first week of August, the RBI’s Monetary Policy Committee meeting is going to be held between August 3 and 5. In which it is believed that the RBI can announce an increase of 25 to 50 basis points in the repo rate. If this happens, then it will become expensive to take home loan to car loan and education loan from banks. At the same time, the EMI of those who are already running home loan EMI will become expensive.
Due to the fall in the commodity, the expensive dollar turned away
In fact, due to the threat of recession in developed countries, commodity prices have come down in recent days, which is expected to reduce inflation. However, crude oil prices remain elevated. The average price of crude oil purchases for Indian oil companies remains at $105.26 per barrel. But the depreciation of the rupee against the dollar has added to the difficulties. Imports have become expensive. Which has ruined the reduction in commodity prices. Retail inflation in the month of June remains above the RBI’s tolerance level at 7.01 percent. At the same time, the Fed Reserve of America is likely to increase the interest rate. It is believed that the Fed may increase the repo rate by 75 basis points.
Possible increase in repo rate by 25 to 50 basis points
In such a situation, many experts believe that the RBI can increase the repo rate by 25 to 50 basis points in the month of August. If Bank of Baroda believes that there can be an increase of 25 basis points in the repo rate, then according to HDFC Bank, it is possible to increase the repo rate by 50 basis points. Let us tell you that earlier in the meeting of the two Monetary Policy Committee, RBI has increased the repo rate by 90 basis points. At present the repo rate is 4.90 percent. However, many experts are also warning about increasing the higher interest rate because the demand is very less in the country at this time. If interest rates increase further, there will be a problem in increasing demand and many sectors may have to bear the brunt of it.
Let us tell you that if the inflation rate remains above 6 per cent on an average for the next three consecutive months, then the RBI will have to explain in writing to the government why it has failed to keep the inflation rate below 6 per cent. Along with this, RBI will also be asked about the measures to reduce inflation and the time period to bring it below 6 percent.