RBI Repo Rate Hike Raises Home Loan Interest Rates in India
The Reserve Bank of India increased the repo rate by 25 basis points to 5.5% on October 7, ending nearly four years of stable rates. This hike affects home loan borrowers with floating-rate loans linked to external benchmarks, mostly the repo rate, causing higher interest costs. RBI may raise rates further by 50-75 basis points amid global tightening and geopolitical risks, impacting repayment strategies for borrowers.
Economic Times·



