юааwhat Rbiтащsюаб юааrepoюаб юааrateюаб юааhikeюаб юааmeansюаб юааfor Yourюаб юааemisюаб юааfixedюа To reduce continuing inflation challenges, the reserve bank of india (rbi) lifted its key repo rate, or the key lending rate, by 35 basis points on wednesday, to 6.25% from 5.90%. While a rate hike was on the cards, it was expected to come only in the june meeting of the monetary policy committee (mpc) with a hike of only 0.25%., which is why the rbi governor's decision.
What Is Rbi Repo Rate What Is Reverse Repo Rate How Does It Affect As per the announcement made, the rbi has hiked repo rate by 40 bps up to 4.40% from 4% earlier. the last time repo rate was cut was in may 2020 and has been kept unchanged since then. hike will come into effect immediately. further, the cash reserve ratio (crr) has been hiked by 50 bps which will exert further upward pressure on interest rates. Noting that headline inflation has risen by 170 bps between february and april 2022, the rbi has projected it at 7.5% in q1 of fy 22, 7.4% in q2, 6.2% in q3, and 5.8% in q4, with a baseline inflation of 6.7% for 2022 23. the rbi aims to bring inflation down to its targeted 4% (±2%). the two hikes in repo rates over the last five weeks. The reserve bank of india (rbi) in its monetary policy meeting held on december 7, 2022 has yet again hiked the repo rate by 0.35%. this is the fifth consecutive repo rate hike since may of this year. as a result of today’s move, the repo rate will go up from 5.9% to 6.25%. borrowers are the worst impacted due to these repo rate hikes. Interest rates of banks and finance companies are likely to go up with their cost of funds expected to rise post the repo rate hike. emis on vehicles, homes, consumer durables, education, advances against fixed deposits and other personal loans will rise as the external benchmark linked lending rate (eblr) of banks will go up by 25 bps — one basis point (bps) is one hundredth of a percentage.
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