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The Reserve Bank has hiked key lending rates by 25 basis points this week. That means that loans have gotten a wee bit more expensive – by 0.25 per cent. Also Read - RBI EMI Moratorium: What Way it is Going to Benefit You | Here's Everything You need To Know
This is the 12th time that the RBI has increased lending rates in the last 18 months. Spiralling inflation is the reason behind the rapid hikes in lending, and the inflation in turn was the result of rise in the prices of food, fuel and manufactured goods. Also Read - RBI Announces Second Targeted Long Term Repo Operation, Extends Fixed Rate Reverse Repo
Banks have said that they will pass on the rate increase to customers with immediate effect.