E-Paper
Debt becomes costlier amid inflation, unemployment: Congress on RBI’s rate hike
The RBI on Wednesday hiked the benchmark repo rate by 50 basis points to 4.90% to clamp down the rising inflation
NEW DELHI: Taking potshots at the ruling dispensation at the Centre and the Reserve Bank of India (RBI), Congress spokesperson and senior party leader Randeep Singh Surjewala today said that the hike in repo rate announced by the central bank will negatively impact people who are already affected by soaring debts, with increased EMI (equated monthly instalments) rates.
The RBI on Wednesday decided to hike the benchmark repo rate by 50 basis points to 4.90% to clamp down the rising inflation, governor Shaktikanta Das announced in a virtual address.
“The RBI increased the repo rate on May 4 by 0.40%. As a result, EMI became costly 3-4 times a month. Today, the repo rate has increased again by 0.50%. As a result, people tied with debts will now be forced to deal with increased EMIs. Debt became costlier along with Inflation, unemployment and empty pockets,” Surjewala said in a tweet.
The central bank had increased the repo rate by 40 basis points on May 4, almost two years after a slash considering the impact of the coronavirus-induced lockdown.
The repo rate remains still below the pre-pandemic level, Das said, as he explained the Monetary Policy Committee is unanimous in its decision to gradually withdraw the extraordinary accommodation during the pandemic situation.
Giving an overview of the global challenges, the governor said that the Indian economy has remained resilient and economic recovery gained momentum despite the ongoing Russia-Ukraine war and the Covid-19 pandemic. However, a large part of the rise in inflation can be attributed to supply shortages because of the war, he said.
