New Delhi: The common man has once again hit by the strike of inflation. To overcome the ever-increasing inflation, the Reserve Bank of India has once again increased the repo rate. RBI has now increased the repo rate by 50 basis points.

On the last day of the monetary policy review meeting chaired by Reserve Bank Chairman Shaktikanta Das, on Friday, an increase of 50 basis points was announced in the repo rate. After this hike, the repo rate has increased from 5.40 to 5.90 percent. This is the fourth consecutive hike by RBI in the repo rate.

Loans will become expensive, EMIs will increase

This simply means that the interest rate will increase. All types of loans including home loans will become costlier. The meaning of this announcement of RBI is that your EMI is going to increase significantly due to this. Its effect will be seen in the form of home loan, car loan and personal loan EMI being expensive.

What is Repo Rate and Reverse Repo Rate?

Repo rate is the rate at which loans are given by RBI to banks and banks give loans to customers with this loan. An increase in the repo rate means that many types of loans from the bank will become expensive. Reverse repo rate is the rate at which banks get interest from RBI on deposits.