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RBI MPC Raises Repo Rate By 25 Bps To 5.50 Percent in First Hike Since February 2023
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News18•07-10-2026, 10:29
RBI MPC Raises Repo Rate By 25 Bps To 5.50 Percent in First Hike Since February 2023
- •The Reserve Bank of India raised the repo rate by 0.25 percentage points to 5.50 percent, marking the first rate hike since February 2023.
- •The increase is expected to raise borrowing costs, leading to higher EMIs or longer loan tenures for floating-rate home and auto loan borrowers.
- •Banks will adjust their lending rates following the policy change, impacting both existing and new loan customers.
- •Higher interest rates may eventually provide better returns for depositors opening new fixed deposits.
Key Questions Answered
The Reserve Bank of India raised the repo rate by 25 basis points to 5.50%.
The hike is expected to increase borrowing costs for individuals with floating-rate home and auto loans, leading to higher monthly EMIs or longer loan tenures as banks adjust their lending rates.
This marks the first repo rate increase since February 2023, representing the first hike in almost four years.
