With today's increase, soon banks can start announcing an increase in their loan rates. The direct effect of repo rates
In fact, the Reserve Bank has announced an increase of half a percent in the repo rates to control inflation.
With the increase, now the repo rates have increased to the level of 5.9 percent. Along with this, the SDF rate has also been increased by half a percent.
Governor accordingly, 5 out of 6 members in the MPC were in favor of an increase of half a percent. After which the rates have been increased from 5.4 percent to 5.9 percent.
According to the governor, these steps are expected to reduce inflation in the coming time.
The Reserve Bank estimates that between January and March, the inflation rate will come within a satisfactory range of 2 to 6 percent.