RBI Hikes Repo Rate By 25 Bps To 5.50%, Changes Stance To Calibrated Tightening; EMIs To Get Costlier

The RBI has increased the repo rate by 25 bps to 5.50%, shifting its policy stance to calibrated tightening. This decision is expected to make borrowing more expensive for consumers, specifically putting upward pressure on loan EMIs. The hike particularly impacts EBLR-linked home loan EMIs, as the increased cost of funds is passed on to borrowers. Consequently, consumers will face higher monthly repayments for their existing and new loans following this monetary policy adjustment.