RBI hikes Repo Rate to 8.5% and CRR to 8.75%

Breaking News! In order to fight the rising inflation, the RBI has decided to hike the repo rate and Cash Reserve Ratio. The repo rate was hiked by 50 basis points to 8.50 percent. Similarly, the Cash Reserve Ratio (CRR) has been hiked by 50 basis points to 8.75 percent.

RBI's repo rate hike to 8.5 percent is the highest since 2002. The CRR hike of 50 basis points will be implemented in two phases from July 19. It is believed that home loans, personal loans, auto loans and all other types of loans will become costlier because of this repo rate hike.