EMIs to go up as RBI raises repo rate to pre-Covid level

This the third straight hike by the central bank in four months and is expected to hike borrowing costs for corporates and individuals. The RBI’s action automatically pushes up the cost of mortgages as over 90% of bank home loans are linked to the repo rate. While deposit rates will also rise, the increase is expected to be slower as the banking system is still flush with the pandemic stimulus.