The Reserve Bank of India (RBI) has increased the repo rate by 25 bps to 6.5 per cent, which will have an immediate effect on your home loan EMIs.
The key benchmark lending rate has risen significantly by 250 bps to 6.50 per cent since June last year, which touched the bottom of 4 per cent in April 2020.
However, inflation is expected to moderate in the long run which should bring down your home loan instalment gradually this year.
The monetary policy committee (MPC) meeting was held from February 6 to February 8.
This was the first MPC meeting after Union Finance Minister Nirmala Sitharaman presented Budget 2023 in Parliament on February 1.