Day after repo rate hike: Banks, NBFCs start raising loan rates

With the Reserve Bank of India (RBI) on Wednesday hiking the repo rate by 50 basis points to 4.9% to tame inflation, banks and non-banking financial companies have now started raising their loan rates. While some rates are linked to the repo rates, others are linked to the lenders’ internal cost of funds. Some banks … Read more

Why RBI must front-load the forthcoming rate hikes

The latest provisional estimates of GDP growth for FY22, of 8.7 per cent, has sent out multiple signals. Slightly lower than the earlier estimate of 8.9 per cent, the latest figure is evidence of the pressures which the economy felt on account of the third wave of the pandemic, and the Russia-Ukraine conflict in the … Read more

Steps by RBI, govt to cut duration of elevated inflation: Finance ministry

Measures taken by the Reserve Bank of India (RBI) and the government will reduce the duration of elevated inflation in FY23, which is mostly through the imports channel due to high crude and edible oil prices, the finance ministry said in a report. “Further, since aggregate demand is recovering only gradually, the risk of sustained … Read more

RBI will have to raise rates at some point like rest of the world: Former RBI Governor Raghuram Rajan

As the Reserve Bank of India treads on the path of balancing growth with high inflation, former RBI governor Raghuram Rajan said the central bank will have to raise interest rates at some time, just like its global counterparts. “It is important to remember that the war against inflation is never over. Inflation is up … Read more

SBI Hikes MCLR By 10 Base Points

India’s largest lender raised the marginal cost-based lending rate by 10 basis points, indicating a pivot from the easing interest rate cycle.State Bank of India raised the one-year MCLR rate to 7.1% from 7%, effective April 15, according to a notification on its website. The rates have been hiked across overnight to three-year loan tenors.The … Read more