If RBI makes an off-cycle rate hike tomorrow, what will it mean for loan EMIs?6 min read . Updated: 03 Nov 2022, 03:48 PM IST
- Following the rate hikes, banks have also increased their lending rates. As per RBI's latest data, the weighted average lending rate (WALR) on fresh rupee loans of SCBs increased by 26 basis points (bps) from 8.33% in August 2022 to 8.59% in September 2022.
RBI making off-cycle rate hikes or cuts is not something new but somehow is still very surprising. If the situation demands it then RBI has, on many occasions, increased or reduced the country's policy repo rate unexpectedly. Something like that is once again expected in an unscheduled MPC meeting that is to be held on November 3. Most likely bets are of another rate hike in this additional meeting of MPC. Now, since RBI began its rate hike trends this fiscal, the impact has been seen on bank lending rates with EMI getting costlier. If RBI makes a rate hike on November 3, what will this mean for loan EMIs going forward?
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