RBI hikes repo rate by 25 basis points to 5.5 pc; changes stance to ‘calibrated tightening’

MUMBAI: (Oct 7) After nearly three-and-half years, the Reserve Bank of India on Wednesday raised key benchmark policy rate by 25 basis points to 5.5 per cent in a bid to tame rising inflation amid continuing West Asia crisis.

With the rate hike, home loans, vehicle loans and corporate loans would become expensive and EMI for existing borrowers would also go up.

A hike in the short-term lending rate (repo) by the RBI marks a reversal from its previous policy action.