NEW DELHI: Loan EMIs are set to rise, with the Reserve Bank of India on Friday hiking key repo rate by 50basis points (bps) to 5.4 per cent in a bid to tame inflation in the country and support growth.
This the third straight hike by the central bank in four months and is expected to raise borrowing costs for corporates and individuals. The marginal spending facility rate and the bank rate has been revised to 5.65 per cent.
Amid the rising inflationary pressure in India, the RBI increased its policy repo rate by 40% basis points in May followed by another hike of 50 basis points in June. The policy repo rate currently stands at 5.4%.
