The apex Bank - Reserve bank of India hiked the repo rate by 0.5%. Earlier it was expected that RBI will maintain its repo rate, but RBI surprised with this sudden move. It has been reported that banks will also now increase their lending rates.
On the other hand president of consumer banking of Kotak Mahindra bank stated that since loan growth is not satisfactory so lending rates may remain same for some time. It has been reported that the RBI’s measure to raise the rates is to control the inflation. Director of federal bank stated that banks need not worry much about the 0.25% raise.
Chief SBI stated that they will think on hiking the rates because they want the borrowers not to suffer. Bankers reported that they will wait and notice the drift in inflation and will then decide to hike the rates.