EMI’s to rise up as RBI ups rate to control inflation.

June 10, 2022

The Reserve Bank of India hiked the interest Rate — this time by 50 basis points.
This would tame inflation but pave the way for rise in home, auto and other loan EMIs.
The six-member monetary committee of the central bank unanimously voted to raise the lending rate by 50 basis points to 4.90 per cent.
The Reserve Bank has the mandate to keep retail inflation at 4 per cent with a bias of 2 per cent on either side.
However, retail inflation has been above 6 per cent for the last four months in a row, rising to as high as 7.8 per cent in April.
The RBI has changed the policy stance to drop the phrase “remains accommodative”, and instead opted for “withdrawal of accommodation” for guiding its future moves.
The rise in interest rate will discourage borrowing that would impact on availability of liquidity.