MUMBAI: The Reserve Bank of India on Wednesday increased the repo rate by 35 basis points to 6.25 percent. RBI also lowered India’s GDP projection to 6.8 percent for 2022-’23 from its earlier estimate of 7 percent. With this, interest rates on all retail loans including housing and vehicles will increase.

Inflation declined to 6.77 percent in November from 7.41 percent in October. However, the meeting decided to increase the rate by 35 basis points (0.35%) as it was above the RBI's upper limit of six percent. Inflation has been above four percent for a year. After a hike of 0.40 basis points at the May meeting, it has been hiked by half a percentage point three times.