(Image source from: Livemint.com)
RBI Hikes Repo Rate By 0.25%:- The Reserve Bank of India (RBI) hiked the repo rate for the first time in the last four years. In its bi-monthly monetary policy held today, key decisions have been made. The repo rate has been hiked by 25 basic points. With the new announcement, the repo rate stands at 6.25%. The reserve repo rate has been hiked to 6%. The Monetary Policy Committee (MPC) completely agreed to hike the repo rate. It is the rate at which Central banks lend money to other banks and reserve repo rate is the rate at which banks lend money to RBI.
With the hike in the repo rate, banks too will start raising their lending rates at the earliest. Some of the banks already started raising the rates from the past one week. State Bank of India (SBI), the country's largest lender hiked the interest rate twice this year. With the hike in repo rate by 0.25%, home loans and auto loans will turn high. The repo rate hike has been discussed widely in the recent times and most of them predicted about it.
(Video Source: NTV Telugu)