RBI hikes repo rate by 25 basis points in first increase in four years

The Reserve Bank of India has raised the repo rate by 25 basis points in its three-day monetary policy committee meeting held from October 5 to 7. This is the first hike in four years, following the rate being held steady at 5.25 per cent in August. The increase is expected to push up interest rates on home loans, car loans, personal loans, and business loans, potentially raising monthly EMIs for borrowers. The Congress party has criticized the decision.