The age of cheap loans, which has been going on for a long time, may come to an end. Reserve Bank of India next week May raise interest rates. If interest rates rise, home, car and other types of loans will become more expensive.
The RBI will announce its monetary policy meeting on October 8. The current repo rate is 4% and the reverse repo rate is 3.50%. The RBI has not changed the rates for the last seven months i.e. 14 months. The RBI meets once every two months. Citigroup expects the RBI to raise the repo rate on October 8. However, the repo rate was expected to rise in December.
Citigroup says many of the country’s central banks are withdrawing relief measures taken during the Corona era. In such a case, the RBI will also come to the club of these countries, which may withdraw the relief measures. Demand is good in many areas. At the same time, many sectors are performing well. Gradually, relief measures will begin to be withdrawn. With the recovery, the level of inflation is now coming down.