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Repo Rate Hike: EMI increases after 43 months for borrowers
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News18•07-10-2026, 11:36
Repo Rate Hike: EMI increases after 43 months for borrowers
- •The Reserve Bank of India has increased the repo rate by 0.25 percent after 43 months.
- •The repo rate now stands at 5.50 percent, up from the previous 5.25 percent.
- •This hike will directly increase the EMIs for home loans, auto loans, and personal loans.
- •RBI Governor Sanjay Malhotra stated that inflationary pressures led to this rate hike.
Key Questions Answered
The Reserve Bank of India raised the repo rate by 0.25 percent, bringing it to 5.50 percent from the previous 5.25 percent.
The recent rate hike on October 7, 2026, was the first increase since February 2023, following a 43-month period where the rate remained stable.
The hike was driven by inflationary pressures from global market turbulence, rising domestic fuel prices, and higher food costs that pushed retail inflation to 4.8 percent in August.
