The repo rate is the rate at which the central bank lends short-term funds to bank
Higher EMIs on the card
it appears that borrowers will have to brace for paying higher equated monthly instalments on their loans and that could impact their purchasing power, bankers and analysts said
By raising rates aggressively, the RBI has clearly indicated that the policy stance is hawkish and this will feed into the entire complex of interest rates from fixed deposits to deposit rate
Fixed deposit investors set to benefit. Depositors should consider locking funds in shorter-duration FDs to benefit from higher interest rates in the coming month
Fixed Deposit Benefits ?
RBI hikes repo rate for first time since August 2018
Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.15% and the marginal standing facility (MSF) rate and the Bank Rate to 4.65%.
The RBI said the increase in the policy repo rate would take effect immediately
The RBI said the increase in the policy repo rate would take effect immediately
“The MPC also decided to remain accommodative while focussing on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth,” the RBI said in a statement.
“These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%,”
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