RBI MPC meet outcome: The apex bank has so far raised the repo rate by 140 basis points since embarking on a tightening cycle at an unscheduled policy meeting in May this year.
A further rise in repo rate would bring more income from bank deposits but will also lead to a significant increase in Equated Monthly Installments for borrowers.
Time to invest in fixed deposits? Know how RBI’s repo rate hike may improve FD returns - Revisions to the policy repo rate by the RBI impacts both the rates of bank lending and deposit.