RBI Monetary Policy Out Now? What Should You Know?

RBI Monetary Policy Know About:

RBI Monetary Policy is out now. Key things you ought to know.

RBI has hiked Repo Rate by 35 BPS. 

1. Our respected RBI governor Shaktikantha Das has raised the repo rate by 35 basis points.
2. Repo rate is the rate at which the Central Bank, i.e. Reserve Bank of India (RBI) lends to the banks in case of a shortage of funds.
3. Raising the repo rate means the loans get dearer.
4. 35 basis points (bps) meaning 0.35%.
5. Meaning if your loan was at 9.5% per annum, it may raise to 9.85%.
6. Depends on how much banks may raise it.
7. The current repo rate after a 35 bps raise is 6.25%.
8. Also, RBI Governor mentioned our country’s forex exchange reserve has gone up by $36 Billion.
9. Our Indian rupee is more stable than the rest of the currencies.
10. The Indian rupee has appreciated by 3% while the other currencies have depreciated as per the governor.
11. The worst of Inflation is behind us.
12. RBI has reduced the GDP forecast by 0.1% to 6.8%.
13. RBI maintains a CPI forecast of 6.7%.
14. Also, RBI Governer also maintained his Bullish view on the growth in India and mentioned India is the fast-growing among Asian countries.

 

Impact of RBI Monetary Policy On YOUR Money:

1. Your loans, be it anything will be higher.
2. Be it a home loan, car loan, or anything, if it’s floater, it will go up.
3. Also, the prices of real estate for buying will go up due to the loan amount for the builder is going up.
4. The forex kitty of RBI has increased by $36 Billion, meaning, RBI is equipped with greater power to regulate INR in case of big depreciation!
5. CPI (Consumer Price Inflation) forecasts is kept at 6.7% meaning for every 100 you spend, your cost may raise by 6.7.
6. Though the RBI governor mentioned that the worst inflation is behind us, he also mentioned that we have to be very watchful. So this is not confidence that inflation won’t be higher!
7. Also, a Repo rate increase may decrease the rates of SB account interests!

 

Those are the key highlights of the RBI Monetary Policy that happened today at 12 PM on 7th December 2022.

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