Indians may have to pay more for car, home and personal loans after the federal bank raised its benchmark interest rate for the first time in nearly four years in a bid to rein in inflation. The Reserve Bank of India (RBI) announced a 25 basis points increase in its repo rate to 5.5% - this is the rate at which it lends money to commercial banks which then pass on the additional cost to customers. Federal banks across the world have adopted tighter monetary policy amid energy-driven inflation as the war in the Middle East continues. India's benchmark equity indices Sensex and Nifty fell with investors weighing the implications of higher borrowing costs for consumption and corporate investment.
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