{
  "id": 12724320,
  "title": "Loans set to get dearer as RBI hikes repo rate after 44 months",
  "url": "https://urgent.news/2026/10/07/loans-set-to-get-dearer-as-rbi-hikes-repo-rate-after-44-months",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T21:21:11.000Z",
  "source": {
    "name": "Times of India",
    "slug": "times-of-india",
    "url": "https://timesofindia.indiatimes.com/business/india-business/loans-set-to-get-dearer-as-rbi-hikes-repo-rate-after-44-months/articleshow/134774530.cms"
  },
  "original_language": "en",
  "account": "The Reserve Bank of India (RBI) has announced a 25 basis point increase in the repo rate to 5.5%, marking its first hike since February 2023. This move comes as stronger-than-expected growth and rising prices due to the conflict in the West Asia have prompted the Monetary Policy Committee to shift its stance from neutral to a calibrated tightening approach. The increase will raise the Equated Monthly Installment (EMI) on a Rs 1 crore loan over 15 years by approximately Rs 1,500, or around Rs 1,471 at the base rate of 8.5%. This could extend the loan period by about 5.5 to 5.9 months, equivalent to an additional six instalments. RBI governor Sanjay Malhotra clarified that the rate hike is an indication of future actions, stating that rate cuts are off the table in the near term, with the policy action ahead being either another rate hike or a pause depending on evolving conditions. SBI chairman CS Setty highlighted the repo rate hike as a response to inflation and a recognition of the Indian economy's resilience, while SBI group chief economist Soumya Kanti Ghosh projected a peak repo rate of around 6% in December. Inflation is expected to peak at around 6.8% in November 2026, with the corresponding peak repo rate. Additionally, crude oil prices are now estimated to average $95 a barrel for FY27, up $5 from earlier estimates, due to global price increases. Banks are expected to revise their fixed deposit rates in a few weeks, with Bajaj Finance already raising senior citizen FD rates by up to 40 basis points to 8.15%.",
  "summary": "The Reserve Bank of India has announced a 25 basis points increase in the repo rate to 5.5%. This decision reflects growing inflation pressures and stronger than anticipated economic growth. The rise in interest rates will lead to higher loan EMIs, impacting consumption during the festive season. Banks are expected to increase fixed deposit rates following this policy change.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Economic Times - Economy",
        "title": "RBI raises repo rate to 5.5% in first hike under Governor Sanjay Malhotra, shifts stance to ‘calibrated tightening’",
        "url": "https://urgent.news/2026/10/08/rbi-raises-repo-rate-to-5-5-in-first-hike-under-governor-sanjay",
        "published": "2026-10-08T00:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}