There is still no hope for the common man who is suffering from skyrocketing inflation. The decision to raise the repo rate was taken today after a three-day meeting of the RBI's Monetary Policy Committee [MPC]. Reports have been increased by 50 Basic Points. As a result, it has now reached 4.90 per cent.
The RBI's decision will push up interest rates on all bank loans. Therefore, the additional burden of EMI will fall on the common man.
The rise in repo rates will increase the EMI of the loan, which will increase the cost of bank loans. The rate at which banks borrow from the Reserve Bank is the repo rate. This increase will increase the cost of bank loans and the burden will fall on the customers. So your home loan, auto loan, it will all become more expensive in the near future.
