RBI push to link loans to repo rate will not bring cheers to home-loan borrowers; banks have again found a way not to fall in line
If there was an expectation that the new repo-rate linked loan rate-setting mechanism will lower the EMI burden on borrowers, it has been proved wrong.
Bank of India has cut the base or the minimum lending rate by 0.05 percent to 9.65 percent
Rajan has had a tough time convincing banks to cut their lending rates taking the central bank’s rate signals
The median base lending rates of banks have come down by about 60 basis points as against a 125-basis point policy rate reduction since January.
Unless banks give up their greed for high margins and pass on the rate-benefit to common households, RBI policies will continue to be a non-event for the common man
The Reserve Bank today said it will shortly announce methodology for determining the base rate taking into account the marginal cost of funds, a move aimed at ensuring that banks pass on policy rate cuts to borrowers.
RBI rate cut is useless for the common man unless banks stop playing the margin game and pass the full benefit of the RBI rate actions to the end-consumer
Almost all the major banks in the system have cut their base rates since the RBI's surprise 0.50 percent cut in the repo rate last Tuesday
The changes suggested will make banks more responsive to the rate signals from the Mint Street and put in place some fair rules when it comes to pricing of credit
Union Bank of India today became the second state-run lender after the Reserve Bank's liquidity tightening moves, to increase its lending rate by 25 basis points to 10.25 percent.
While newspapers have gone to town trying to tell you and me that interest rates are falling, nothing like that has happened