New Delhi/Ground Bureau — The Reserve Bank of India has taken a major decision regarding the country's economy by hiking the repo rate by 25 basis points. This is the first time since 2023 that interest rates have been increased, raising concerns for crores of borrowers.
The decision was taken in the Monetary Policy Committee meeting, pushing the repo rate to 5.5 percent. Experts believe this step was necessary to control persistent retail inflation.
Direct impact on home loan and car loan EMIs
The hike will immediately make home, car, and personal loans expensive. Borrowers with floating-rate loans will see their monthly EMIs increase or loan tenures extended after a stable period of nearly four years.
Effect on real estate market and investors
The real estate sector may face a slowdown as expensive loans could reduce homebuyer demand. However, banks are likely to increase fixed deposit interest rates, benefiting savers.
