EMIs to rise again after RBI repo rate hike and there’s more pain to come

Banks and other financial institutions have been hiking loan interest rates over the past two months. However, rising inflation has shattered the hopes of borrowers who have been hoping for this rate hike to stop. The Reserve Bank of India (RBI) in its monetary policy meeting held on August 05, decided to increase the repo rate again by 50 bps to 5.4 percent. Consequently, the reverse repo rate has also gone up to 3.85 percent. Other key policy rates, that is standing deposit facility rate has been hiked to 5.15 percent.