Loan EMIs May Go Up As RBI Announces Sixth Straight Lending Rate Hike

The Reserve Bank of India hiked its key repo rate by 25 basis points on Wednesday as expected but surprised markets by leaving the door open to more tightening, saying core inflation remained high. The central bank said that its policy stance remains focused on the withdrawal of accommodation. Most analysts had expected a hike on Wednesday to be the final increase in the RBI's current tightening cycle, which has seen it raise rates by 250 bps since May last year.

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