RBI hikes repo rate, home loans set to become costly
Posted on: 07/Jun/2018 9:39:29 AM
The June meeting of the Reserve Bank of India financial policy review was conducted yesterday (Wednesday, 6th June) in Delhi. After this, RBI has raised the REPO interest rate. This increase comes after a gap of 4 years since the last Repo interest rate revision.
The Governor of the Reserve Bank of India, Urjit Patel, after the above meeting, informed that the REPO interest rate has been increased by 0.25%, Thus, it has gone up from 6.25% to 6.5%. The inflation in the 1st half of the financial year 2018-19 will be from 4.8% to 4.9%. In the 2nd half of the financial year, it will be 4.7%
GDP will be between 7.5% and 7.6% during the 1st half and between 7.3% and 7.4% during the 2nd half. As the price of crude oil has been increasing in the international market, the Indian Rupee has been depreciating. Activities are being initiated to stabilize this.
As REPO interest rates have now been revised after 2014, there are strong prospects of the interest rates for the home and vehicle loans going up.
