Noting that the stickiness of core inflation remains a "matter of concern", the Reserve Bank of India (RBI) on Wednesday hiked the policy repo rate by 25 basis points (bps) which will lead to an increase in EMIs on home, car and other loans and make fixed deposits more attractive. The hike in repo rate will lead to a hike in the cost of borrowing for all types of loans and thus negatively impact demands. On the other hand, it will bring cheers to fixed deposit investors, notably senior citizens and pensioners who rely heavily on interest earnings.
Published 09 February 2023, 02:15 IST