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    RBI HIKES REPO RATE

    RBI MPC rate hike: Experts decode what the policy decision means for mutual fund investors

    The RBI raised the repo rate by 25 basis points to 5.50%, its first hike in nearly four years. Mutual fund managers favour short-duration, high-quality debt, while cautioning investors on duration, inflation, crude prices, global rates and tightening liquidity.

    Sharper, bigger RBI moves coming in December? SBI economists put things in perspective

    The recommendations come as the central bank manages inflation risks alongside pressure on the rupee and capital flows. A 50-basis-point increase in December would mark a sharper pace of tightening than Wednesday's hike, if inflation and global conditions take the expected path.

    Home loan EMI for these borrowers will go up as RBI increases repo rate by 25 bps: Know the impact on Rs 25 lakh-Rs 2 cr home loans

    RBI repo rate: Borrowers with home loans linked to External Benchmark Linked Rates will see an increase in their EMIs. The Reserve Bank of India has raised the repo rate, impacting the cost of borrowing. This is the first repo rate change since December 2025 and will influence many floating rate loans. Home loan borrowers had previously benefited from reduced rates but now face higher payments.

    RBI repo rate hike: What it means for your home loan EMI
    A new rate game begins. What’s inside the RBI’s new playbook?

    RBI rate hike in October monetary policy marks a sharp shift to calibrated tightening, raising the repo rate to 5.5%. RBI Governor Sanjay Malhotra is prioritising inflation risks as crude oil, food prices and inflation expectations rise. Strong FY27 GDP growth at 7.1%, rapid credit growth and tighter liquidity give RBI room to act before supply shocks spread across markets.

    FCNR inflows to keep cap on bank deposit rates

    The liquidity from the foreign currency non-resident deposits is likely to stabilize bank deposit rates temporarily. This situation will allow banks to benefit from higher lending rates associated with floating rate loans. Despite the current surplus liquidity, analysts foresee a shift towards neutrality by the end of December. The Reserve Bank of India emphasizes the importance of proper usage of these deposits for economic stability.

    The Economic Times
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