Reserve Bank of India raised the repo rate on Wednesday, and banks have made loans more expensive since then. On Wednesday, two banks, PNB and Bank of India, increased loan rates, and today (June 10) Bank of Baroda (BOB) increased loan rates based on Marginal Cost of Funds Based Lending Rate (MCLR), i.e. Marginal Cost of Funds. Rates will be raised. This information was provided by the bank in a stock exchange filing. The new rates will go into effect on June 12. According to the period, BOB, the country’s third largest public sector bank, raised interest rates by 0.10-0.20 percent.
|MCLR tenure||Existing MCLR (%)||New rates (effective from June 12) (%)|
The repo rate was raised by 0.50 percent.
The RBI decided on Wednesday to raise the repo rate by 0.50 percent at its bimonthly monetary policy meeting. The repo rate has risen to 4.90 percent as a result of this increase. The repo rate was raised by 40 basis points last month, in May, and is now 4.40 percent. This means the repo rate has risen by 0.90 percent twice since May.