Stories
RBI Hikes Repo Rate by 0.25 Percent; EMIs to Rise and Stance Shifted to Calibrated Tightening
C
CNBC Awaaz•07-10-2026, 10:14
RBI Hikes Repo Rate by 0.25 Percent; EMIs to Rise and Stance Shifted to Calibrated Tightening
- •The Monetary Policy Committee unanimously raised the repo rate by 0.25 percentage points to 5.50 percent.
- •The RBI shifted its stance to 'calibrated tightening' to control inflation and manage global economic risks.
- •Borrowers with floating-rate loans like home and auto loans may see an increase in their monthly EMIs or loan tenures.
- •Fixed deposit holders could benefit from higher interest rates if banks decide to raise new FD rates.
- •Stock markets may experience volatility, with potential impacts on interest-sensitive sectors like real estate, auto, and NBFCs.
Key Questions Answered
The MPC raised the repo rate by 0.25 percentage points to 5.50 percent and shifted its policy stance to 'calibrated tightening' to control inflation.
Interest rates on floating-rate loans linked to the repo rate may increase, which can cause banks to raise the monthly EMI or extend the loan repayment tenure depending on the loan terms.
RBI Governor Sanjay Malhotra cited fears of rapidly rising global inflation, tighter global debt conditions, uncertainties surrounding AI stock valuations, and the West Asian conflict as key risks.
