Repo rate tops pre-Covid level

MUMBAI: In a move that will increase the cost of borrowings for businesses and individuals, including home and auto loans, the Reserve Bank of India has hiked its repo rate by 50 basis points from 4.9% to 5.4%.

It’s the third hike in quick succession, after 40 bps in May and 50 bps in June. RBI governor Shaktikanta Das has rolled back all cuts during the pandemic and taken rates back over the pre-pandemic level. A 50-basis point, or half-a-percentage point increase in the home loan rate will inflate the EMI on a 20-year Rs 1 crore home loan by Rs 3,085 from Rs 80,559 to Rs 83,644.

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Repo rate tops pre-Covid level

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