The State Bank has raised its lending rates by 20 basis points to 8(point)15 per cent, with immediate effect, setting the tone for the industry to follow suit. Which of the following is not a impact it?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Car loan will be costlier
B	Car loan will be cheaper
C	Home loan will be cheaper
D	Both B and C

Explanation:

Detailed explanation-1: -Base Rate revised as 9.40% p.a. w.e.f. 15.12.2022.

Detailed explanation-2: -Repo Rate: It is the interest rate at which the central bank of a country lends money to commercial banks. The central bank in India i.e. the Reserve Bank of India (RBI) uses repo rate to regulate liquidity in the economy.

Detailed explanation-3: -Higher borrowing costs eventually slow borrowing and thus economic activity. This should eventually slow inflation, which is the objective of central banks in raising interest rates.

Detailed explanation-4: -The MCLR for two years has been raised from 8.50% to 8.60%; and the MCLR for three years has been raised from 8.60% to 8.70%. SBI External Benchmark based Lending Rate EBLR from 8.90%+CRP+BSP to 9.15%+CRP+BSP. SBI Repo Linked Loan Rate (RLLR) from 8.50%+CRP to 8.75%+CRP.

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