RBI Hikes Rates in Mid Year Credit Policy, Loan Rates Goes Up
Reserve Bank of India (RBI) Mid Year Credit Policy has seen rise in deposit rates again. All this due to high inflation rate which is now 9.06%.
The immediate effect of this RBI credit policy will be on deposit rates of banks and higher rate of loans like Home Loan, Vehicle loan etc. Now borrowing loan from bank will be costlier.
RBI has raised the short-term lending (repo) rate by 25 basis points to 7.50% and the short-term borrowing (reverse repo) rate will move up by a similar margin to 6.5%. It kept other rates and ratios unchanged.
This move of RBI will effect on growth rate.
[Read : Impact of RBI Credit Policy]