Tags: Repo rates September 2011, reverse repo rates, RBI credit policy, interest rates, Repo rate, reverse repo rate hiked by RBI
Today Friday 16th September 2011 the Reserve Bank of India (RBI) has raised the repo rate by quarter of a percent point, while keeping the reverse repo and CRR rate unchanged. This is the 12th hike in last 18 months and will lead to costlier loans. Double-digit inflation control is said to be the reason behind this hike.
The decision leads to following changes
1. The repo rate now stands at 8.25 per cent,
2. The reserve repo gets adjusted to 7.25 per cent.
3. The CRR remains unchanged at 6 per cent.
The wholesale price index, India's main inflation gauge, rose 9.78 per cent in August, above the 9.22 per cent recorded for July.
When the repo rate increases, it will impact on following sections
1. Borrowing from RBI becomes more expensive.
2. All loans personal and corporate are likely to become costlier
3. Home loan EMIs will increase once banks hike their base rate
Today Friday 16th September 2011 the Reserve Bank of India (RBI) has raised the repo rate by quarter of a percent point, while keeping the reverse repo and CRR rate unchanged. This is the 12th hike in last 18 months and will lead to costlier loans. Double-digit inflation control is said to be the reason behind this hike.
The decision leads to following changes
1. The repo rate now stands at 8.25 per cent,
2. The reserve repo gets adjusted to 7.25 per cent.
3. The CRR remains unchanged at 6 per cent.
The wholesale price index, India's main inflation gauge, rose 9.78 per cent in August, above the 9.22 per cent recorded for July.
When the repo rate increases, it will impact on following sections
1. Borrowing from RBI becomes more expensive.
2. All loans personal and corporate are likely to become costlier
3. Home loan EMIs will increase once banks hike their base rate
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