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RBI Raises Repo Rate After 3.5 Years, Impacting Loans and Savings

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The Reserve Bank of India has increased its key repo rate after a gap of three and a half years. This decision will typically lead to higher interest rates for various loans, potentially increasing borrowers' EMI payments. Savers, however, could see improved returns on fixed deposits and other savings instruments. The central bank's move is a monetary policy tool to manage economic conditions like inflation.

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