Banks are raising interest rates to the extent that the Reserve Bank has decided to raise key interest rates to curb inflation. The country’s largest banks have been announcing a series of interest rate hikes. Recently, private sector bank ICICI Bank and state-owned Bank of Baroda announced that they were raising interest rates. This will lead to higher interest rates on home loans.
ICICI Bank has hiked the external benchmark lending rate to 8.10 per cent linked to the RBI repo rate, while Bank of Baroda has announced that it will charge 6.90 per cent interest on retail loans. Bank of India and Central Bank of India will follow the same path. They may announce an increase in interest rates.
