By how much can your EMIs go up after RBI's 35 bps rate hike?5 min read 07 Dec 2022, 02:03 PM IST
After 50 basis points hike three times in a row, RBI softened in December policy and increased the repo rate by 35 basis points to 6.25%. Hence, so far in FY23, the repo rate has been increased by 225 basis points.
In line with expectations, the Reserve Bank of India (RBI) took a softer approach and hiked the repo rate by 35 basis points in the December policy. With that, the policy repo rate has reached its highest level since August 2018 at 6.25%. Following this, banks are likely to hike their interest rates on various loans. In a rate hike scenario, the borrowing cost gets higher and banks pass on the impact to borrowers. That being said, EMIs are likely to go up ahead. Since May, banks have increased lending rates significantly tracking RBI's rate hike trends.
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