RBI INCREASES THE REPO RATES – EFFECT – INTEREST RATES GO UP – HOME LOAN INTEREST RATES UP AND UP


Reserve Bank of India announced a 25 basis points (0.25 per cent) hike in repo rate or the benchmark rate as widely expected.

The RBI’s move may force banks to increase interest rates on loans leading to higher EMIs (equated monthly installments) for existing home loans and costlier retail loans for new customers.

But, as widely expected, some banks and financial institutions may not hike the interest rate.