The Reserve Bank of India (RBI) has decided to keep the repo rate unchanged at 6.5% in its August 2023 monetary policy meeting. This means that there will be no increase in EMIs for borrowers with existing loans.
The RBI has maintained the repo rate unchanged for the third time in a row. This is due to concerns over rising inflation. Inflation in India rose to 7.01% in May 2023, which is above the RBI's target of 6%.
The RBI has said that it will continue to monitor inflation closely and take appropriate action to keep it under control. However, it has also said that it is mindful of the impact of higher interest rates on growth.
The decision to keep the repo rate unchanged is a relief for borrowers with existing loans. However, it is important to note that the RBI has not ruled out a repo rate hike in the future. If inflation continues to rise, the RBI may be forced to raise the repo rate in order to control it.
If you are considering taking out a new loan, it is important to factor in the possibility of a repo rate hike. You may want to consider a fixed rate loan, which will protect you from rising interest rates.
Here are some tips for borrowers with existing loans:
- Make sure you are on a repayment plan that you can afford.
- Consider consolidating your loans into one, which may give you a lower interest rate.
- Make extra payments on your loan whenever possible.
- If you are struggling to make your payments, contact your lender and ask for help.
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