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RBI Repo Rate Hike: Reserve Bank increases repo rate by 0.25%, EMIs to get costlier
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News18•07-10-2026, 10:22
RBI Repo Rate Hike: Reserve Bank increases repo rate by 0.25%, EMIs to get costlier
- •The Reserve Bank of India has hiked the repo rate by 0.25 percent, raising it from 5.25 percent to 5.50 percent.
- •This hike will directly impact borrowers, increasing the monthly EMIs for home loans, car loans, and personal loans.
- •The SDF rate has been reduced to 5.25 percent, while the MSF and Bank Rate have been increased to 5.75 percent.
- •The decision was driven by inflationary pressures, rising crude oil prices, and currency depreciation.
- •While borrowers will face higher financial burdens, savers might benefit from potential increases in Fixed Deposit interest rates.
Key Questions Answered
The Reserve Bank of India has increased the repo rate by 0.25%, raising it from 5.25% to 5.50%.
The repo rate hike will directly increase interest rates and monthly EMIs for floating-rate loans, including home loans, car loans, and personal loans.
The RBI hiked the repo rate primarily due to mounting inflationary pressures, rising crude oil prices, and rupee depreciation.
