India's largest private sector lender HDFC Bank on Monday announced an increase in its marginal cost of funding-based lending rate (MCLR) across all tenors by up to 10 basis points.
As of today, August 8, the new MCLR rates will be in effect. In response to the latest RBI policy decision, the key interest rates were raised.
Since May, the Reserve Bank of India has raised interest rates three times in a row.
To raise the interest rate to pre-pandemic levels, the repurchase rate (repo) was raised by 50 basis points.
It was last seen in August 2019 at 5.40 percent.
Inflation is stubbornly high and the rupee is depreciating, so RBI hiked interest rates to combat it.
Following the RBI's repo rate hike last Friday, other major banks like ICICI, PNB, Canara Bank, and Bank of Baroda have also increased their loan interest rates.