mumbai in a move that will increase the cost of borrowings for businesses and individuals including home and auto loans the reserve bank of india has hiked its repo rate by 50 basis points from 49 to 54its the third hike in quick succession after 40 bps in may and 50 bps in june rbi governor shaktikanta dashas rolled back all cuts during the pandemic and taken rates back over the prepandemic levelread alsoexplained rbi could do more repo rate hikes in monetary policy india story resilient heres whyrbi monetary policy review experts are of the view that more hikes are in order and that the biggest factors driving the mpcs decisions on inflation and growth are likely to be externalunacceptably high inflation led to 50 bps rate hike expect measured policy moves from now shaktikanta dasthe unacceptably high inflation trending around 7 per cent mark led the reserve bank of india to hike rates by an aggressive 050 per cent on friday according to governor shaktikanta dasa 50basis point or halfapercentage point increase in the home loan rate will inflate the emi on a 20year rs 1 crore home loan by rs 3085 from rs 80559 to rs 83644repo rate is the rate at which the central bank lends money to banks and is the benchmark for nearly 40 of the loans which will result in automatic readjustmentwhile the rate hike was on the higher end of market expectations the rbi retaining its 202223 projections for both gdp growth 72 and inflation 67 helped calm sentiment the sensex closed 89 points higher at 58387 while the rupee gained 23 paise to close at 7924 after touching an intraday high of 7894rbis rate hike comes when crude oil and international commodity prices have shown signs of softening amid fears of a recession in the west rbis action however appears to have been influenced by volatility in the rupee which recently hit 80 to the dollar rbi has expended over 40 billion of its reserves defending the rupee with this hike rbi has kept up with other central banks that have increased rates far more than in indiaterming inflation above 6 as unacceptable das said indias macroeconomic and financial sector stability and resilient growth gave rbi space to take action on ratesrbi doubles home loan limits for coop bankswith its latest revision rbi has hiked the repo rate by 140 basis points since may 4 the steepest increase in over a decade along with the repo rate rbi also revised the standing deposit facility sdf to 515 the sdf is a facility where banks park their surplus liquidity with the rbito boost housing demand which is likely to get dampened because of the increase in interest rate the rbi has doubled the home loan limits for cooperative banks the rbi has also allowed rural cooperative banks to provide loans to commercial real estate for housing projectsthe markets expected a rate hike between 35 and 50 basis points das said that