Banks raise deposit rates after RBI repo hike
In short
Banks lifted fixed deposit rates on some tenures after the RBI raised the repo rate by 25 basis points in October. Lending rates also started to edge higher.
This can make deposits more rewarding for savers and loans costlier for borrowers if the trend continues.
What the reporting says
Banks raised fixed deposit rates on select tenures after the RBI’s 25-basis-point repo rate hike in October, while lending rates also began to rise. Business Standard’s summary says major lenders moved on deposits following the policy increase, which can make savings products more attractive and borrowing more expensive.
Why it matters
Banks raised fixed deposit rates on select tenures after the RBI increased the repo rate by 25 basis points in October, and lending rates also started to move higher. The reported move affects depositors seeking better returns and borrowers facing potentially higher loan costs.