On 26th July, RBI raised repo rate and reverse repo rate by 50 BPS hence new rates will be 8% and 7% respectively. In the last 16 Months RBI increased rate 11 times.
RBI has increased rates to fight with inflation.Increase in rates will affect life of lay men on all sides. Cost of living would be so high. Few days back there was hiked in milk price by 2 rupees. Crude prices are also increasing which will increase cost of transportation. Increase cost of transportation will increase price of basic commodity.
Worldwide effect of slow economy is also one of the reasons of increase in rates. Growth of Indian economy is also depending on agriculture. But if we will not get good monsoon this year then price of vegetables and oils will increase.
Due to increase in rates, home loans and personal loans will be costlier. Interest burden will be increased on persons who have already taken home loan on floating rates. Hence it will make miserable life for lay men. It will become dreams who wants to buy home.
RBI has increased rates to fight with inflation.Increase in rates will affect life of lay men on all sides. Cost of living would be so high. Few days back there was hiked in milk price by 2 rupees. Crude prices are also increasing which will increase cost of transportation. Increase cost of transportation will increase price of basic commodity.
Worldwide effect of slow economy is also one of the reasons of increase in rates. Growth of Indian economy is also depending on agriculture. But if we will not get good monsoon this year then price of vegetables and oils will increase.
Due to increase in rates, home loans and personal loans will be costlier. Interest burden will be increased on persons who have already taken home loan on floating rates. Hence it will make miserable life for lay men. It will become dreams who wants to buy home.
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