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New Delhi. According to a big news, where the Monetary Policy Meeting of the Reserve Bank of India (RBI) is ending today, i.e. on 6th April. On the other hand, if experts are to be believed, RBI Governor Shaktikanta Das can announce an increase of 0.25% in the repo rate. At the same time, this repo rate is 6.50%. If this happens, now it will become more expensive for you and us to take a loan.
In the last financial year, the repo rate increased up to 2.50% in 6 times.
It should be known that the meeting of monetary policy is held every two months. Although the first meeting of the last financial year 2022-23 was held in April-2022. Then RBI had kept the repo rate stable at 4%, but then RBI called an emergency meeting on 2nd and 3rd May and increased the repo rate by 0.40% to 4.40%.
Actually, after 22 May 2020, this change in the repo rate took place. After this, in the meeting held on 6 to 8 June, the repo rate was increased by 0.50%. This increased the repo rate from 4.40% to 4.90%. Then in August it was further increased by 0.50%, due to which it reached 5.40%.
Whereas in September last year the interest rates were 5.90%, then in December the interest rates reached 6.25%. After this, the last monetary policy meeting for the financial year 2022-23 was held in February, in which interest rates were increased from 6.25% to 6.50%.
What is ‘repo’ and ‘reverse repo rate’
Please inform that, Repo rate is the rate at which loan is given by RBI to all the banks. Banks later give loans to their customers from this loan. Now if the repo rate is low, then many types of loans from the bank will become cheaper, while the reverse repo rate is just the opposite of this repo rate.
Actually ‘reverse rate’ is the rate at which RBI gets interest on deposits from banks. Liquidity in the markets is controlled through the reverse repo rate. Repo rate being stable means that the loan rates from banks will also remain stable now.
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