In its policy statement, RBI has asked banks to link the base rate
to MCLR from April 1, 2018 to ensure expeditious transmission of its policy rate to borrowers.
They are always quick to put up their interest rates on mortgages and loans to the BoE base rates
, but they hardly ever give savers the same rates.
25 per cent base rate
rise on Thursday - for both house purchases and those remortgaging.
5 percent and the bank inferred that further cuts to the base rate
The base rate
is the minimum rate of interest at which a bank can lend to borrowers.
Sidharth Rath, president (treasury, business banking & capital markets), Axis Bank, said, "The bank has reduced the base rate
by 10 basis points as the cost of funds has eased due to softening of interest rates based on improving liquidity and other macroeconomic developments.
Carney added that the timing of the rate rise would not be as important as any increase in the base rate
being "limited and gradual".
According to the RBI mandate, banks cannot lend below the base rate
," said another senior official with one of the top three auto financing firms.
No withdrawals are permitted during the product term, and rates could fall if the Bank base rate
goes even lower.
Some 13% of homeowners on a tracker rate are unsure how an increase to the base rate
will affect their mortgage, and almost one in five (18%) believe their monthly repayments will increase, but again not necessarily by as much as the base rate
ICICI Bank, the country's second-largest lender, has revised its base rate
by 50bps to 8.
NS) has announced that it is not planning to alter its base rate
Summary: In a move that could increase transparency and efficiency in loan pricing, the Reserve Bank of India (RBI) has proposed that all loans be priced off a base rate
as against the current practice of linking them to the so-called benchmark prime lending rate (BPLR).
The base rate
level under which we currently operate has not increased in 24 years," McDonald said.
TENS of thousands of homeowners have interest-free mortgages following the latest cut to the Bank of England base rate