To control rising inflation, the RBI has increased interest rates by 50 basis points or 0.50 percent on Friday, due to which the repo rate has now increased from 5.40 percent to 5.90 percent. After this increase, the interest rate of home loan, tax loan, personal loan and all other loans can be seen to increase once again in the country. Including today's increase, the interest rates have increased by 2.25 percent in the last few months, whose direct effect is being seen on the loans given by the banks.
The rate at which banks borrow money from the Reserve Bank is called repo rate. An increase in the repo rate means an increase in the lending rate that banks get from the Reserve Bank. In such a situation, a reduction in the repo rate means cheaper money for the bank. This means that if the RBI increases the repo rate, the debt of the general public increases.
RBI Governor Shaktikanta Das said that the GDP growth forecast for October-December 2022 has come down to 4.4 per cent. The GDP growth forecast for January-March 2023 has come down to 4.2 per cent. The GDP growth forecast for FY23 has come down to 6.8 per cent from 7 per cent.
Talking on the inflation forecast, the RBI governor said that the CPI inflation forecast for October-December 2022 has been increased from 6.5 per cent to 6.6 per cent. The CPI inflation forecast for January-March 2023 increased to 5.9 per cent from 5.8 per cent. The CPI inflation forecast for April-June 2023 remained unchanged at 5.0 per cent. CPI inflation seen at 5.4 per cent in July-September 2023. Reserve Bank of India Governor Shaktikanta Das said that CPI inflation can remain at 6.7 percent in this financial year.