Get ready to pay extra EMI as RBI hikes key rates

The Reserve Bank of India on Thursday hiked its repo rate or the rate at which it lends to commercial banks by 0.25 per cent and reverse repo rate or the rate at which it drains liquidity from the banking system by 0.50 per cent in its first-ever mid-quarter review to fight inflationary pressures. The RBI said in a press release that "inflation remains the dominant concern in macroeconomic management."