What is the impact of 25 basis points repo rate hike on borrowers?

In the rate cut cycle the MPC had cut the rate by 125 basis points in phases from 6.5% to 5.25% before increasing it on Wednesday (October 7, 2026)Story so far: The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday (October 7, 2026) voted unanimously to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 bps to 5.50%.