Why Does RBI Raise and Cut Interest Rates? The Repo Rate-EMI Connection, Explained

This guide describes what the RBI repo rate is, why the RBI increases or cuts the repo rate, and how it affects your home loan EMI, fixed deposit returns, savings, business loans, and regular expenses. It also covers who makes these decisions and how they influence economic growth. After reading this guide, you’ll understand how small repo rate changes can affect your monthly budget, savings income, and complete financial planning.