RBI MPC Meeting December 2022: RBI Governor Shaktikanta Das announced that the monetary policy committee – MPC hiked the repo rate by 35 basis points (bps) to 6.25 per cent. The central bank also cut the growth forecast for current financial year to 6.8 %.
This time the repo rate has been increased by 35 basis points. As a result, the total repo rate has increased to 6.25 percent. It is noteworthy that this is the 5th consecutive time that the Reserve Bank of India has increased the interest rates. Earlier, it was increased at the rate of 50 basis points, but this time it has been slightly increased to provide relief.
Financial experts predict that financial crisis will arise within the next six months to a year. Due to this, the countries of the world are increasing the interest rates to deal with that situation. US Fed (US Fed Rates Hike) is the first to increase. The Central banks of other countries have followed the same path.
As RBI is increasing the interest rates, this burden will be immediately passed on to the people by all the banks. Increase interest rates will be applicable on the loans. These are also applicable on household, personal, education, vehicle loans etc. At the same time, the interest rates on fixed deposits will increase.