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RBI Hikes Repo Rate by 0.25 Percent After 43 Months, EMIs to Rise
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News18•07-10-2026, 10:21
RBI Hikes Repo Rate by 0.25 Percent After 43 Months, EMIs to Rise
- •The Reserve Bank of India has increased the repo rate by 0.25 percent after a gap of 43 months.
- •The repo rate has now risen from 5.25 percent to 5.50 percent.
- •The hike will make retail loans including home loans and auto loans costlier, directly increasing EMIs for borrowers.
- •RBI Governor Sanjay Malhotra announced the decision on October 7 following a three-day Monetary Policy Committee meeting.
- •The central bank has also shifted its stance from neutral to hawkish, indicating potential future rate hikes if inflation persists.
Key Questions Answered
The Reserve Bank of India increased the repo rate by 0.25 percent to 5.50 percent, up from its previous level of 5.25 percent.
With most bank interest rates linked to the repo rate, the 0.25 percent hike will directly increase interest rates and EMIs for retail loans such as home loans and auto loans.
The RBI shifted its monetary policy stance from neutral to hawkish while keeping the Standing Deposit Facility rate unchanged at 5.25 percent and the Marginal Standing Facility at 5.75 percent.
