NEW DELHI: The Reserve Bank (RBI) has hiked interest rates on short-term loans to banks. The repo rate was hiked by 0.25 per cent, bringing the total rate to 6.5 per cent. With this, banks will increase interest rates on auto, home and personal loans. As a result, monthly repayment of the loans or the repayment period will increase.

Bank fixed deposit interest is also likely to rise. Interest rates have risen for the sixth time in a row in nine months. RBI Governor Shaktikanta Das announced the interest rates after the Reserve Bank Monetary Policy Committee (MPC) meeting.