Repo Rate Likely To Increase Again As Inflation Picks Up
· Business · NDTV
A growing number of economists are predicting a follow-up 25-basis-point increase at the Reserve Bank's next decision on December 4. The anticipated rate adjustment comes as inflation figures show a persistent upward trend in recent months. Financial analysts note that persistent price pressures are prompting monetary policymakers to tighten credit conditions further. The central bank previously signalled a cautious approach to interest rate changes depending on incoming macroeconomic data. Borrowers and retail consumers face potential increases in loan equated monthly instalments if the monetary policy committee implements the projected hike.
Why it matters
An increase in the repo rate directly raises borrowing costs for retail consumers and businesses, pushing up loan EMIs across home, auto, and personal loans.
Read the original report — NDTV
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