Reserve Bank of India raises repo rate by 50 basis points to tame inflation
Big blow to EMI payers, RBI hikes repo rate to 5.9%
How will the hike in repo rate affect your loan EMIs?
All loans will become expensive due to increase in repo rate.
Actually repo rate is the rate at which RBI provides loans to other banks.
Opposite of this, reverse repo rate is the interest rate that the central bank pays to the banks on keeping money with the RBI.
--The RBI on Friday hiked the repo rate by 50 bps to 5.9 per cent.--This is RBI's fourth repo rate hike in the current financial year.--Earlier in August, the central bank increased the repo rate to 5.4 %.