India, Oct. 7 -- The Reserve Bank of India (RBI) has raised the repo rate by 25 basis points (bps) to 5.50%, while changing its monetary policy stance to 'calibrated tightening'. The decision is important for borrowers, savers, and households as changes in the RBI's policy rate can influence bank loan and deposit rates.

But what does the latest RBI monetary policy decision mean for the common man? From home loan EMIs and personal loans to fixed deposits and savings, here is what borrowers and savers need to know.

RBI Repo Rate Hike: What Does 25 Bps Increase Mean?

A 25 basis point increase means the repo rate has gone up by 0.25 percentage points.

The repo rate is the interest rate at which the RBI lends short-term funds to commercial...