The Reserve Bank of India (RBI) increased the repo rate by 35 basis points to 6.25 per cent on Wednesday. The latest decision by the central bank could increase the EMI payable on cars, homes and various other loans to go up.
The RBI has been taking decisions to hike repo rates in a bid to tame inflation amid rising global economic concerns. The current decision was taken based on the assessment done in the Monetary Policy Committee meeting.The apex bank had increased the repo rate by 50 basis points (BPS) to 5.9 per cent in September.
In its off-cycle monetary policy review in August, the RBI increased the repo rate by 50 basis points (bsp) to 5.4 per cent.
Earlier in May, the RBI hiked the policy repo rate by 40 basis points or 0.40 per cent to 4.40 per cent. Then in June, the RBI further raised the rate to 4.90 per cent, a 50 basis points increase.
