Inflation Likely to Remain Above 6% | No Change In Growth Forecast | S_Bhattacharya on RBI Monetary Policy

After the meeting of RBI on Monetary Policy Reserve Bank of India has increased Repo Rate by 50 basis points. There is no change in growth forecast by RBI. Expert on monetary policy S Bhattacharya while talking to Mirror Now said that around 60 to 65 percent of home loans are linked to repo rate, so even 1% of change in repo rate will directly impact on home loans interest rate. So home loans will become more costlier and the interest rate on home loans and thereby EMI will increase.He also said that credit demand increasing over the period of time banks will try to attract more deposits. Market rates are increased and to compete with them banks will have to increase deposit rate.