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HomeBusinessThe trend of increasing interest rates will continue, the repo rate is...

The trend of increasing interest rates will continue, the repo rate is expected to increase by 1.5 percent in 2022-23

Repo rate may increase by more than one percent this year

The Reserve Bank today increased the repo rate by 40 basis points to 4.40 percent. With this decision of the central bank, loans will become expensive for corporate and common borrowers. Along with this, the CRR has also been increased.

reserve Bank (RBIThe hike in key rates on Wednesday is a start and further increases in the repo rate can be seen in the coming times. Market experts have given this estimate. According to experts, there is a clear indication from today’s unexpected growth that the Reserve Bank had to act fast, which will increase the inflation rate in the economy.EconomyDon’t derail the growth rate. Reserve bank today repo rate (Repo rate) has been increased by 40 basis points to 4.40 percent. With this decision of the central bank, loans will become expensive for corporate and common borrowers. Actually, the biggest concern for the bank is to keep the inflation rate under control, which has become unbridled for the last 3 months.

loan will be expensive

The effect of today’s increase in the repo rate will be seen gradually. According to Umesh Rewankar, Vice Chairman, Shriram Finance Transport, he believes that interest rates will increase gradually in the coming times. However, there is a large amount of cash available in the market at present, so the cost of loans will also see a gradual increase. On the other hand, ApnaPaisa Executive Chairman V Swaminathan said that all loans which are repo linked, especially home loans and loan against property will now become costlier, while increasing MCLR by banks will also increase the EMI of other loans.

RBI was under pressure due to rising inflation

According to Abhishek Goenka of IFA Global, the Reserve Bank has been under pressure from rising inflation and the central bank has taken swift steps to control it. He said that we have seen that due to inflation, the profits of big FMCG companies have been badly affected. This clears the picture of price pressure. The market was already anticipating a rate hike, although it was expecting this increase next month and at the same time the growth was expected to be lower.

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Rate hike will continue in future

At the same time, according to market experts, this is the beginning of the increase in rates and further increases can be seen in key rates. According to Sandeep Bagla, CEO of Trust Mutual Fund, the market should expect a gain of 35 basis points in June as well. George Alexander Muthoot, MD, Muthoot Finance, said that he believes that this is the beginning of the rate hike by the Reserve Bank. At the same time, according to Madhavi Arora, Chief Economist of Emkay Global Financial, there may be an increase of 1.25 to 1.5 percent in rates in 2022-23.

Source: www.tv9hindi.com

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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