RBI Hikes Repo Rate by 25bps to 6.5%
In the last bi-monthly monetary policy meeting of this Financial Year, the RBI hikes the repo rate by 25 bps to 6.50%.
Although inflation is under control RBI is not taking its foot off the pedal. This is the 6th consecutive hike from May 2022.
Repo Rate Movements in this Financial Year
| Date | Repo Rate | Change |
| 4 May 2022 | 4.40% | 40bps |
| 8 June 2022 | 4.90% | 50bps |
| 5 Aug 2022 | 5.40% | 50bps |
| 30 Sep 2022 | 5.90% | 50bps |
| 8 Dec 2022 | 6.25% | 35bps |
| 8 Feb 2023 | 6.50% | 25bps |
As per RBI estimates, inflation is likely to be between 4 to 6.5%. The next 4 quarters from Q1 are likely to be at 5%, 5.4%, and 5.6%.
Real GDP growth for 2023-24 is projected at 6.4% with Q1 at 7.8%, Q2 at 6.2%, Q3 at 6% & Q4 at 5.8%.
This rate hike will have an impact on your housing loan, you are likely to pay 0.25% higher interest rates because floating rates on home loans are now linked to repo rates.
Hi, I’m Managing Director at Gurpreet Saluja Financial Services Pvt. Ltd. Where I help my investors to invest in mutual funds and achieve their financial goals. I’m also a Value Investor and here I write about Personal Finance & Investing.