RBI Raises Repo Rate by 25 Basis Points to 5.50% to Quell Inflationary Pressures

The RBI Monetary Policy Committee unanimously raised the policy repo rate by 25 basis points to 5.50% on Wednesday, shifting its monetary stance to calibrated tightening.

The rate hike increases benchmark external benchmark lending rates and marginal cost lending rates, directly pushing up existing floating EMIs for retail and corporate borrowers.

Home loan borrowers face immediate higher costs, with a ₹1 crore 20-year loan EMI rising by ₹1,600 and new buyers experiencing a 2% to 3% drop in affordability.