RBI Repo rate hike: Home loan, car loan EMIs likely to go up

In a surprise and unscheduled move, the Reserve Bank of India (RBI) announced a hike in repo rate. The central bank raised the repo rate by 40 basis points (bps) to 4.40 per cent. The RBI also hiked the cash reserve ratio (CRR) by 50 basis points to 4.5% effective May 21.
The decision was taken to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months. However, the RBI's move will have an impact on those who have borrowed home loans and auto loans.