New Delhi: Bank of Baroda on Wednesday hiked lending rates across various tenures by 5 to 20 basis points. In a regulatory filing to the stock exchanges, it said the revised interest rates would come into effect immediately.
Separately, housing finance company HDFC on Tuesday increased its retail prime lending rate on housing loans by 25 basis points with immediate effect. (ALSO READ: Sensex, Nifty end flat as IT stocks drag, metals surge)
The decisions follow the Reserve Bank of India monetary policy committee`s move to raise the repo rate by 50 basis points to 5.40 per cent in order to contain the persistently high inflation. (ALSO READ: Beware! Petrol pump dealership offers arriving on messages, calls could be scam, check details)
The hike took the repo rate above pre-pandemic levels of 5.15 per cent. Raising interest typically suppresses demand in the economy and helps to contain inflation.