The Reserve Bank of India on Friday increased the policy rate repo by 0.5 percent to 5.4 percent to control retail inflation.
These banks made their loans expensive
ICICI Bank and Punjab National Bank have also increased the lending rate after the Reserve Bank of India (RBI) increased the benchmark interest rate by 0.50 percent. RBI on Friday increased the interest rate by 0.5 percent, due to which repo rate reached a three-year high of 5.40 percent. Since May, the Reserve Bank has increased rates three times and has increased the repo rates by 1.4 percent. The central bank has indicated to hike rates further
how expensive the loan
ICICI Bank said in a notification that the ICICI Bank External Standard Lending Rate i.e. External Benchmark Based Lending Rates (I-EBLR) is fixed on the basis of the policy rate of RBI. And with the increase in repo, the increase in this too has come into effect. The bank said, I-EBLR is 9.10 per cent per annum and payable per month. It will be effective from August 5, 2022. Public sector Punjab National Bank also gave information about the increase in the rate, saying, after increasing the repo rate by the RBI, the Repo Related Lending Rate (RLLR) has also been increased from 7.40 percent to 7.90 percent with effect from August 8, 2022. Will be. Banks keep their lending rates related to the repo rates, so that any change in the repo increases or decreases the rates accordingly.
Repo rates hiked by half a percent
The Reserve Bank of India (RBI) on Friday increased the policy rate repo by 0.5 percent to 5.4 percent to control retail inflation. In the fourth monetary policy review of the current financial year, the policy rate has been increased for the third time in a row. Overall, the repo rate has been increased by 1.4 percent so far in 2022-23. With this, the key policy rate has risen above pre-pandemic levels. The repo rate in February 2020 was 5.15 percent. At the same time, the Monetary Policy Committee (MPC) has also decided to focus on withdrawing the soft policy stance, that is, there may be further increase in rates.