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RBI hikes repo rate by 0.50%

Updated: Oct 1, 2022

RBI repo rate hike | Rbi has increased the repo rate by 50 basis points from 5.40 percent to 5.90 percent.


Reserve Bank of India's use of repos:


In India, the Reserve Bank of India (RBI) uses repo and reverse repo to increase or decrease money supply in the economy. The rate at which the RBI lends to commercial banks is called the repo rate. In case of inflation, the RBI may increase the repo rate, thus discouraging banks to borrow and reducing the money supply in the economy. As of September 2020, the RBI repo rate is set at 4.00% and the reverse repo rate at 3.35%.


RBI Repo (repurchage) Rate Hiked:

Your EMI of home loans to car loans and education loans has become more expensive in this festively time season. Reserve bank of India has decided to increase the repo rate for the fourth consecutive time. Reserve bank of India has increased the repo rate by 50 basis points from 5.40 percent to 5.90 percent. Reserve bank of India Governor Shri Shaktikanta Das has made this announcement after the RBI Monetary Policy Meeting. That is, now there has been increase of 1.90 percent in five months (May 2022 – September2022).

The decision taken due to the increase in inflation:

Rates as of 9 June 2022

Rates as of August 2022

Rates as of 30 September 2022









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