Home, auto and other loan EMIs are set to rise further after RBI on Friday raised the key interest rate by 50 basis points, the third straight increase since May in an effort to cool stubbornly high inflation.
The increase in lending rate or the repurchase rate (repo) by 50 bps to 5.40 per cent is 25 bps higher than the pre-pandemic repo level.
Reserve Bank of India (RBI) Governor Shaktikanta Das signalled that the second straight half-point hike wasn’t the end of the rate tightening regime and more may come to tame inflation that has for six months stayed above the comfort zone of 6 per cent.
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