The Reserve Bank of India (RBI) on Friday hiked the key lending (repo) rate by 50 basis points. This is the third increase since May to tackle rising inflation. The rate hike will mean home, auto and other loan EMIs will rise further.
The hike by 50 bps to 5.40 per cent is 25 bps higher than the pre-pandemic repo level.
RBI Governor Shaktikanta Das indicated that this may not be the end of the tightening regime. The RBI, however, did not revise its existing economic growth or inflation forecast despite indications of a global slowdown.