The Reserve Bank of India raised its key interest rate by 50 basis points on Wednesday, taking the repo rate to 4.9 per cent, and raised its inflation projection for the current fiscal to 6.7 per cent, well above the upper-end of its target range of 2-6 per cent.
Home, auto, and other loans' EMIs will rise after the Reserve Bank of India on Wednesday raised its key interest rate by 50 basis points, the second increase in five weeks.
The rupee recovered on Wednesday from its record low close of 77.78 per cent in the previous session after the Reserve Bank of India hiked its key lending rate by 0.5 per cent andmaintained a hawkish stance thereby restricting significant losses for thecurrency.