{"id":33872,"date":"2026-10-07T21:53:08","date_gmt":"2026-10-07T21:53:08","guid":{"rendered":"https:\/\/koshalsambada.in\/?p=33872"},"modified":"2026-10-07T21:53:08","modified_gmt":"2026-10-07T21:53:08","slug":"rbi-repo-rate-hike-loans-set-to-get-dearer-as-rbi-hikes-repo-rate-after-44-months","status":"publish","type":"post","link":"https:\/\/koshalsambada.in\/?p=33872","title":{"rendered":"Rbi Repo Rate Hike: Loans set to get dearer as RBI hikes repo rate after 44 months"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-134774538,imgsize-107512,width-400,height-225,resizemode-4\/repo-rate-hike.jpg\" alt=\"Loans set to get dearer as RBI hikes repo rate after 44 months\" title=\"File photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai (Picture credit: Reuters)\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<div class=\"Ta7d_ img_cptn\"><span title=\"File photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai (Picture credit: Reuters)\">File photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai (Picture credit: Reuters)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>MUMBAI: In a move that could hurt consumption during the festive season, mortgages and other loans are set to become more expensive, while deposits will start yielding higher returns in a few weeks, with Reserve Bank of India Wednesday announcing a hike in key interest rates.<span class=\"id-r-component br\" data-pos=\"2\"\/>RBI raised the repo rate by a widely expected 25 basis points to 5.5% on Wednesday, its first increase since Feb 2023, as stronger than expected growth and broader price pressures due to escalation of the West Asia conflict prompted the Monetary Policy Committee to unanimously vote for an increase and shift its stance from neutral to &#8220;calibrated tightening&#8221;.<span class=\"id-r-component br\" data-pos=\"4\"\/>The move will raise the EMI on a Rs 1 crore loan over 15 years by around Rs 1,500 a month, or about Rs 1,471 at a base rate of 8.5%.<span class=\"id-r-component br\" data-pos=\"8\"\/><\/p>\n<div data-pos=\"0\" class=\"id-r-component iIpbx undefined  &#10;        \">\n<div><img decoding=\"async\" alt=\"Up 25bps to 5.5%; rate cuts off table, says governor\" msid=\"134774536\" imgsize=\"43234\" resizemode=\"4\" width=\"\" title=\"\" placeholdersrc=\"https:\/\/static.toiimg.com\/photo\/83033472.cms\" offsetvertical=\"0\" placeholdermsid=\"47529300\" type=\"thumb\" class=\"\" src=\"https:\/\/static.toiimg.com\/photo\/imgsize-43234,msid-134774536\/up-25bps-to-5-5-rate-cuts-off-table-says-governor.jpg\" data-api-prerender=\"true\"\/><\/div>\n<\/div>\n<p>If EMI remains unchanged, the higher rate could extend the loan by about 5.5 to 5.9 months, equivalent to six additional instalments.<span class=\"id-r-component br\" data-pos=\"11\"\/>Clarifying that the calibrated tightening was an indication of future actions, RBI governor Sanjay Malhotra said, &#8220;Given the current conditions, rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook.&#8221;<span class=\"id-r-component br\" data-pos=\"14\"\/><\/p>\n<p><h2>RBI raises FY27 growth and inflation projections<\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"16\"\/>According to SBI chairman CS Setty, the repo rate hike is both a response to inflation and a recognition of the resilience of the Indian economy.<span class=\"id-r-component br\" data-pos=\"18\"\/>\u201cThe upward revision in the growth outlook is reassuring, even as geopolitical developments and supply-side pressures including elevated energy prices warrant continued close monitoring,\u201d he said.<span class=\"id-r-component br\" data-pos=\"20\"\/>According to SBI group chief economist Soumya Kanti Ghosh, with inflation currently expected to peak at around 6.8% in Nov 2026, the corresponding peak repo rate could be around 6% in Dec. <!-- -->So, brace for further increase in EMIs. One of the drivers of inflation is crude oil, which RBI estimates will now average $95 a barrel for FY27, up $5 from its earlier estimate after global prices increased from $82 a barrel in July to around $116 per barrel in Sept.<span class=\"id-r-component br\" data-pos=\"25\"\/>While banks are expected to take a few weeks to revise their fixed deposit rates as they are flush with funds from the special NRI deposit scheme, Bajaj Finance revised its FD rates by up to 40 basis points, taking rates for senior citizens up to 8.15%.<span class=\"id-r-component br\" data-pos=\"28\"\/>RBI raised its 2026-27 real GDP growth forecast by 40 basis points from the Aug review to 7.1%, driven largely by a sharp revision in Q2 growth to 7.2% from 6.4%. The Q3 forecast was also raised, while the Q4 projection was unchanged.<span class=\"id-r-component br\" data-pos=\"30\"\/>It also raised this year\u2019s inflation forecast from 5% to 5.2%, with all quarterly forecasts revised higher; Q1 FY28 saw the biggest increase, at 30 basis points to 5.6%. Core inflation was also raised marginally to 4.4%. The MPC expects inflation to average 5.8% over the next three quarters.<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/loans-set-to-get-dearer-as-rbi-hikes-repo-rate-after-44-months\/articleshow\/134774530.cms\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>File photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai (Picture credit: Reuters) MUMBAI: In a move that could hurt consumption during the festive season, mortgages and other loans are set to become more expensive, while deposits will start yielding higher returns in a few weeks, with Reserve 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photo: Reserve Bank of India (RBI) Governor Sanjay Malhotra arrives at a press conference in Mumbai (Picture credit: Reuters) MUMBAI: In a move that could hurt consumption during the festive season, mortgages and other loans are set to become more expensive, while deposits will start yielding higher returns in a few weeks, with Reserve [&hellip;]","magazineBlocksPostCategories":["\u0b26\u0b47\u0b36 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