<p>Even though the RBI kept its policy rate on Thursday, a number of public sector banks, notably Bank of Baroda (BoB) and Canara Bank, increased their marginal cost of funds based lending rates (MCLR) by up to 10 basis points.<img decoding=”async” class=”alignnone wp-image-124552″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-canara-bank-and-bank-of-baroda-raise-lending-rates-by-up-to-10-basis-points-images-2023-08-12t092314.570-11zon.jpg” alt=”theindiaprint.com canara bank and bank of baroda raise lending rates by up to 10 basis points images 2023 08 12t092314.570 11zon” width=”1196″ height=”997″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-canara-bank-and-bank-of-baroda-raise-lending-rates-by-up-to-10-basis-points-images-2023-08-12t092314.570-11zon.jpg 246w, https://www.theindiaprint.com/wp-content/uploads/2023/08/theindiaprint.com-canara-bank-and-bank-of-baroda-raise-lending-rates-by-up-to-10-basis-points-images-2023-08-12t092314.570-11zon-150×125.jpg 150w” sizes=”(max-width: 1196px) 100vw, 1196px” title=”Canara Bank and Bank of Baroda raise lending rates by up to 10 basis points 3″></p>
<p>The action will increase the cost of EMIs connected to MCLR.</p>
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<p>The rate most consumer loans are anchored to is the one-year MCLR.</p>
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<p>In contrast to the current rate of 8.65 percent, the amended one-year MCLR would be 8.70 percent, according to a regulatory filing by BoB.</p>
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<p>It said that the new tariff will go into effect on August 12.</p>
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<p>With effect from August 12, Canara Bank also increased its MCLR by 5 basis points to 8.70%.</p>
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<p>Bank of Maharashtra (BoM), another lender in the public sector, has raised its MCLR by 10 basis points.</p>
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<p>According to a filing by BoM, the rate of the one-year MCLR increased from 8.50% to 8.60% as a result of the increase.</p>
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<p>It said that the new rate will take effect on August 10, 2023.</p>
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<p>The Reserve Bank of India Governor, Shaktikanta Das, announced the decision of the Monetary Policy Committee (MPC) to maintain the policy repo rate at 6.50 percent with the ability to intervene should the need arise.</p>
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<p>Furthermore, he said, “with monetary transmission currently in place and headline inflation still above the 4% objective, the MPC chose to stay focused on removal of accommodation to ensure that inflation gradually aligns with the target, while sustaining growth.</p>
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