On the liquidity announcement, economists said the central bank is likely to focus on maintaining adequate liquidity through its Liquidity Adjustment Facility (LAF) operations, and may not announce any tightening measures.
August may be the last month to lock in your investments in special FD schemes offering high interest rates. You'd also need to verify your income tax returns, spend smartly as the festival season kicks off, and track the RBI’s monetary policy announcement for any repo rate hike this August.
Companies and banks raised Rs 57,032 crore in April as compared to Rs 1.16 lakh crore in March, according to Prime Database.
The central bank has increased its policy rate by 250 bps since May last year to tame inflation.
The US Federal Reserve, on March 22, hiked key interest rates by 25 bps, taking it between 4.75 percent and 5 percent. Experts believe the Reserve Bank of India is likely to hike the repo rate by 25 bps in April.
The price of 14.2 kg domestic LPG has been raised by Rs 50 per cylinder. Moreover, the RBI repo rate hike is now making its way into loan interests and the EMIs.
Home loan interest burden is set to increase post the RBI’s repo rate hike of 25 basis points. Consequently, EMI per lakh have risen 20-25 percent since the start of this rising rate cycle. Vipul Patel, founder at Mortgageworld, tells you how borrowers can now take some steps to reduce the total interest payable over the loan tenure, in this podcast. Tune in!
Housing finance companies steal a march over banks bound by home loans linked to repo rate, offer cheaper home loans
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The fresh hike in repo rate is likely to have a market-wide impact on borrowers as existing EMIs, as well as new loans, are set to become costlier. The rate hike has given momentum to rising FD interest rates.
Kotak Mahindra Bank and ICICI Bank have also hiked their interest rates recently.