RBI Governor Shaktikant Das: Repo rate hiked, EMI will be expensive. oneindia hindi
Meaning of hike in repo rate
After the decision of RBI, now the repo rate has gone up to 4.4 percent. The central bank has also increased the cash reserve ratio (CRR) by 50 basis points. With this decision, where taking home loan, car loan, personal loan has become costly, then those doing fixed deposits i.e. FD and having money in savings account will benefit.
Good days for FD people
While the increase in the repo rate will increase the EMI, then the FD investor will get better returns on the new FD than before. It has been observed that whenever there is an increase in the interest rates after an increase in the repo rate, the short-term and medium-term interest rates are first hiked. That is, in such a situation, those who take a new FD or get their FD renewed, they will get good benefits. They will get better returns than before.
what is repo rate
Repo rate is the rate at which the central bank gives loans to banks. The increase in the repo rate means that the rate at which the Reserve Bank gives loans to the banks. That is, now banks will now get loans from the Reserve Bank at a higher rate. On this basis, the bank will also give loans to its customers at a higher rate. At the same time, the interest rate of FD will also be increased.