In a surprise move, Reserve Bank of India (RBI) has hiked the repo rate by 40 bps up to 4.40% from 4% earlier. It appears that borrowers should prepare for an increasing EMI burden and FD investors can hope for better returns on new FDs. Rajiv Anand of Axis Bank says home loan rates will rise in the next three months. He saids deposit rates will also go up in the coming months.
