Your home loan car loan may become more expensive:RBI likely to raise repo rate, says SBI citing report

Your home loan and car loan could become more expensive in the coming days. The State Bank of India has claimed in a research report that the Reserve Bank of India may raise the repo rate. According to the report, the RBI may raise the repo rate by 0.25% in its October credit policy and could increase it by the same amount again in December. This means the repo rate could rise by up to 0.50%. At the Monetary Policy Committee meeting held in August, the RBI had kept the repo rate unchanged at 5.25% for the fourth consecutive time. However, a rate increase is now considered almost certain at the next MPC meeting, scheduled to be held between 5 and 7 October.