RBI Raises Interest Rates for First Time in Over 3 Years

The Reserve Bank of India (RBI) announced on the 7th that it has decided to raise the repo rate, its benchmark interest rate, by 25 basis points to 5.50%. This marks the RBI's first rate hike since February 2023. RBI Governor Sanjay Malhotra stated that current inflation pressures have intensified and noted that future decisions will depend on economic conditions, with rates either being raised further or held steady. According to The Economic Times of India, interest rates for housing loans, personal loans, and auto loans are expected to rise following this decision.