RBI repo rate hiked: What it means for your EMI, FD and inflation

The Reserve Bank of India has raised the repo rate by 25 basis points to 5.5%, its first rate hike in nearly four years.

But what does the RBI's repo rate hike mean for you? Could your home loan, car loan or personal loan become more expensive? And could higher interest rates benefit fixed deposit investors?

In this episode of Onmanorama Explains, we break down the repo rate, SDF and MSF, explain why the RBI is raising rates and look at India's rising inflation. Retail inflation rose to 4.82% in August, while the RBI expects inflation to average around 5.8% over the next three quarters.

Financial expert S Adikesavan explains how a 25-basis-point hike could affect borrowers, why repeated rate hikes could be more significant, and whether interest rates are the right tool to tackle supply-side inflation.

We also look at India's 7.8% Q1 FY27 GDP growth and the RBI's balancing act between inflation, economic growth, liquidity and global financial conditions.