Despite the slowdown in the economy, Britain has increased interest rates, now the burden is going to increase on the pockets of Indians

New Delhi : After America, now prime interest rates have been increased in England as well. The Bank of England on Thursday raised its prime interest rate from 1.75 per cent to 2.25 per cent. The Bank of England said that it will continue to take tough measures to contain inflation, despite the forecast of the economy going into recession. The Bank of England estimates that the UK economy will shrink by 0.1 per cent in the third quarter. The economy will be affected due to additional public holidays for Queen Elizabeth’s funeral. Adding to the fall in production in the second quarter, the UK economy is expected to technically enter a recession.

America hikes rates drastically
On Wednesday, before Britain, the US made a huge increase in key interest rates (US Fed Interest Rates). The US central bank Federal Reserve has increased the key interest rate by 0.75 percent. The US Fed has raised interest rates for the third time in a row. In this way, the US Federal Reserve Bank has increased its interest rate to the range of 3-3.25 percent. At the same time, the bank has indicated that it may increase interest rates in the coming meeting also. The central bank estimates that it can take interest rates to 4.6 percent by the year 2023.

Here too the interest rate hike is almost certain.
After America and Britain, now interest rates may increase in India soon. RBI’s Monetary Policy Committee meeting (RBI MPC Meet) is going to be held from 28 September to 30 September. It is believed that in this meeting, RBI can take a decision to increase the repo rate by 0.25 to 0.35 percent. On August 5, the RBI had increased the repo rate by half a percentage point to 5.40 percent. At the same time, there are indications that the government is not in favor of raising interest rates by the RBI.
US Fed Interest Rates: The US central bank has increased interest rates for the third time in a row, tension is going to increase in India too.
loan will be expensive
To control inflation, central banks increase interest rates. After this the banks will also increase the interest rates on the loan. Its direct loss will be to the borrowers. Interest rates will go up on all types of loans including home loans, car loans and personal loans. Those who have already taken a home loan, they will have to pay a higher amount in EMI.

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