RBI raises repo rate 0.25% to 5.5% adopts calibrated tightening
Business
The RBI just bumped up its repo rate by 0.25% to 5.5%, the first change since 2022.
This move shifts its policy from "neutral" to "calibrated tightening," as it tries to keep inflation in check and manage money flow in the financial system.
Repo hike could raise EMI costs
The repo rate is basically what banks pay when borrowing from the RBI, so when it goes up, loans and EMIs could get pricier for everyone.
The decision, made every two months by the Monetary Policy Committee, is meant to balance rising prices and keep the economy steady, so expect some ripple effects across sectors if you're following markets or planning big purchases.