RBI hikes Repo Rate and CRR

Breaking News! The Reserve Bank of India has hiked the repo rate by 0.50 percent from 8.50% to 9%. Similarly, the Cash Reserve Ratio (CRR) has been hiked by 0.25 percent from 8.75% to 9%. The new rates will be effective from August 30.

According to RBI sources, the decision was taken to bring down the inflation rate to 5 percent. Currently, it is at 11.89%. Since the RBI has increased the repo rate, the interest rates for home, car and personal loans are likely to go up.