Karur Vysya Bank Interest Rate: The Reserve Bank did not make any change in the repo rate for the third consecutive time in the monetary review policy and retained it at the old level of 6.5 percent.
On the other hand, Karur Vysya Bank of the private sector announced a 0.15 percent increase in the benchmark lending rate. With this, the benchmark lending rate has increased to 7.75 percent. After this decision of the bank, the interest rate is expected to increase. This can shock the customers of the bank.
The new rates will be effective from August 14
In a regulatory filing from Karur Vysya Bank, it was said that the new rate will be effective from August 14. The filing said that the bank’s external benchmark rate- repo linked (EBR-R) would be changed from 9.60 per cent to 9.75 per cent.
Reserve Bank Governor Shaktikanta Das has said a day earlier that the Monetary Policy Committee (MPC) has decided to keep the repo rate unchanged at 6.50 percent with preparations to take action.
He said, ‘Apart from this, monetary transmission is still going on and the inflation rate remains above the target of 4 percent. The MPC decided to focus on withdrawing adjustments to ensure that inflation progressively aligns with the target, while supporting growth.
