RBI hiked interest rates on home & car loans

RBI has hiked the interest rates on the loans for house  and car in order to provide relief to the common people by controlling the inflation rate. An un-expected rise of 0.50 % has been introduced by reserve Bank of India in short term repo and reverse repo rates. this will directly hit car, home and personal loans. It's 11th time since March 2010 that RBI hiked the interest rates to get hold of increasing inflation rates but still it's above 9 %.

Banks have made a strong comment on this unexpecetd rise in interest rates and expected an increase of 1/4 th in the interest rates. Governor of RBI, Dr. D. Subbarao on Tuesday announced the first quarterly review and said that, an increase of 0.50 % has been made in repo and reverse repo rates to control the increasing inflation rates.  

Now the repo rates have gone upto 8.0 % from 7.50 % and reverse repo has moved to 7 % from 6.5 %. However, no changes have been made in Bank rate  and Cash Reserved Ratio (CRR), which is stable at 6%.