A higher repo rate eventually leads to higher equated monthly instalments (EMIs) or extended loan tenures on cars, homes, electronic goods and other big-ticket purchases, squeezing affordability, particularly for price-sensitive customers. Combined with weaker rural purchasing power amid a patchy monsoon and elevated food inflation, it could weigh on financed big-ticket purchases this festive season, said Ajitabh Bharti, co-founder of CapitalXB, a non-banking financial company.
