RBI hikes repo rate: What happens to your EMIs now

The Reserve Bank of India (RBI) on Wednesday hiked repo rate -- the rate at which the central bank lends short term money to commercial banks-- by 25 basis points (0.25 per cent) to 6.50 per cent. This is the first time in nearly five years that the RBI has gone for a back-to-back hike, having increased repo rate by 25 bps to 6.25 per cent + in its last policy meet in June. The last time, the central bank had effected a consecutive raise was in October 2013.

Reverse Repo Rate -- the rate at which the RBI borrows money from commercial bank--was also hiked to by 25 basis points to 6.25 per cent 

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