After RBI Slashing Key Interest Rates, Real Lending Rates Have Gone Up by 44 Basis Points: Report
4 years, 4 months ago

After RBI Slashing Key Interest Rates, Real Lending Rates Have Gone Up by 44 Basis Points: Report

News 18  

Even after the Reserve Bank has slashed the key interest rates by 135 basis points since February this year, the real lending rates have only gone up by 44 bps in spite of nominal lending rates falling by 105 bps during the same period, says a report. According to them, "loan flow is a whopping 106 per cent lower than last year, since the first lockdown was lifted in Mid-May" and both low credit demand and high real lending rates are constraining the recovery. While nominal MCLR has come off by 105 bps since March 2019 on RBI easing, the real MCLR has jumped by 44 bps, with core WPI inflation dropping to 0.8 per cent in June from 2.3 per cent in March 2019. "The latest RBI data shows bank loan growth has slowed to 5.9 per cent on July 17 from 7 per cent in February and 12.2 per cent last year.

Growth Credit Interest Rates Real Cent Rbi Last Year Contraction Lending Bps 100 Bps Real Lending Rates  rs  rbi  real  points  contraction  key  gone  interest  rates  cent  lending  growth  bps  credit  slashing  report

History of this topic

U.S. Federal Reserve is set to cut key rate but consumers might not feel much benefit anytime soon
1 week ago

U.S. Federal Reserve is set to cut key rate but consumers might not feel much benefit anytime soon

The Hindu  

Federal Reserve officials on Wednesday will likely signal a slower pace of interest rate cuts next year compared with the past few months, which would mean that Americans might enjoy only slight relief from still-high borrowing costs for mortgages, auto loans and credit cards. The central bank’s policymakers may signal that they expect to reduce their key rate just two …

RBI keeps interest rate unchanged at 6.5%, lowers GDP projection to 6.6%, cuts CRR to 4%
Trending News
2 weeks, 5 days ago

RBI keeps interest rate unchanged at 6.5%, lowers GDP projection to 6.6%, cuts CRR to 4%

New Indian Express  

MUMBAI: The Reserve Bank of India on Friday kept the benchmark interest rate unchanged at 6.5%, marking the 11th consecutive time the lending rate has remained steady. The RBI's Monetary Policy Committee opted against any knee-jerk reaction to the growth slowdown in the second quarter with a repo rate cut, emphasising the need to be prudent and measured in its …

Major bank makes big call on interest rates - here's when home borrowers can expect some relief
2 months, 3 weeks ago

Major bank makes big call on interest rates - here's when home borrowers can expect some relief

Daily Mail  

A major bank has now revised its interest rate forecasts to have the Reserve Bank providing relief in February. National Australia Bank also forecast rates being eased by 25 basis points during every quarter of 2025 until the cash rate fell to 3.1 per cent in early 2026 for the first time since February 2023. A major bank has now …

Rate cuts set to boost market confidence
3 months ago

Rate cuts set to boost market confidence

China Daily  

China's top financial regulators, in a move that went beyond market expectations, unveiled a potent combination of monetary easing measures on Tuesday, aimed at anchoring market confidence and underpinning economic recovery amid domestic and global headwinds, analysts said. Pan Gongsheng, governor of the People's Bank of China, the nation's central bank, said at a news conference on Tuesday that the …

Piyush Goyal confident of rate cut by Reserve Bank in coming months
10 months ago

Piyush Goyal confident of rate cut by Reserve Bank in coming months

The Hindu  

Commerce and Industry Minister Piyush Goyal on February 19 exuded confidence that the Reserve Bank will cut interest rates as inflation is under control. In case the Reserve Bank goes for a reduction in the key short-term lending rate, the cost of borrowings both for corporate as well as individuals, will go down, and hence EMIs. The RBI on February …

How RBI’s 25 bps repo rate hike could impact your loan EMIs
1 year, 10 months ago

How RBI’s 25 bps repo rate hike could impact your loan EMIs

Live Mint  

As widely speculated, the Reserve Bank of India has hiked the repo rate for the sixth time in a row, by 25 bps to 6.50% with immediate effect. After the RBI's latest repo rate hike on February 8, banks are expected to raise interest rate in retail loans. So, it's of utmost importance for a common man to know how …

RBI MPC: 50 Bps Rate Hike Will Make Home Loans Dearer Soon, Says Anarock
2 years, 2 months ago

RBI MPC: 50 Bps Rate Hike Will Make Home Loans Dearer Soon, Says Anarock

ABP News  

The Reserve Bank of India’s Monetary Policy Committee on Friday raised the repo rate by 50 basis points for the fourth time in a row. As commercial banks link their retail loans to repo rate, the hike in rates will increase interest rates, making home loans costlier. Anarock in a statement on Friday said that with this repo rate hike, …

Markets end with slight gain as RBI hikes repo rate by 50 bps
2 years, 4 months ago

Markets end with slight gain as RBI hikes repo rate by 50 bps

India TV News  

Highlights UltraTech Cement, ICICI Bank, Bharti Airtel, Power Grid, Wipro and Axis Bank were the major gainers Mahindra & Mahindra, Maruti, Reliance Industries and IndusInd Bank lagged behind RBI had raised the key interest rate by 50 basis points to 5.40 percent Equity benchmarks ended modestly higher on Friday after the Reserve Bank raised the key interest rate in an …

Get ready for another interest rate hike and costly loans
2 years, 4 months ago

Get ready for another interest rate hike and costly loans

Deccan Chronicle  

MUMBAI: The Reserve Bank of India may increase its key interest rates for the third consecutive time by 25-35 basis points to check high retail inflation, experts said. With retail inflation ruling above 6 per cent for six months, the RBI had raised the short-term borrowing rate twice -- by 40 basis points in May and 50 basis points in …

Repo-rate hike likely to continue; may rise by 75 bps by March next year: Experts
2 years, 7 months ago

Repo-rate hike likely to continue; may rise by 75 bps by March next year: Experts

India Today  

The 40 basis points hike in the benchmark repo rate of the Reserve Bank od India after the off-cycle meeting of the central bank’s monetary policy committee or MPC will lead to a rise in EMIs. WHAT SBI's ECOWRAP SAYS In its latest Ecowrap, the SBI’s economic research unit said that as of December 2021, around 39.2% of the loans …

High NPAs, sticky interest rates
4 years, 1 month ago

High NPAs, sticky interest rates

India Today  

A recent working paper from the Reserve Bank of India has said that a high incidence of non-performing assets in banks act as a major roadblock to the transmission of the monetary policy actions of the central bank—in other words, preventing banks from passing on the benefit of lower interest rates to their retail customers. This observation is significant because …

Home loans get cheaper as SBI cuts lending rates
4 years, 6 months ago

Home loans get cheaper as SBI cuts lending rates

The Hindu  

Country’s largest lender State Bank of India has reduced the marginal cost of fund based lending rate by 25 bps across all tenors. The lending rate reduction comes after Reserve Bank of India cut the repo rate by 40 bps in May. Following the repo rate cut, the lending rates of SBI which are linked to the repo rate, are …

Discover Related