Home loan EMIs likely to increase as RBI hikes repo rate

The woes of home loan borrowers will continue as the Reserve Bank of India (RBI) hiked the repo rate yet again in its bi-monthly monetary policy review. On Wednesday, the central bank announced a 25 basis points (bps) hike in the repo rate. With the latest hike, the repo rate now stands at 6.50 per cent. One basis point is equivalent one-hundredth of a percentage. RBI had increased rate by 25 bps in the previous policy review after a gap of four-and-a-half years.