hours later reserve Bank of IndiaSeveral lenders including have taken steps to increase the repo rate by up to 35 basis points Bank of India And HDFC bank, on Wednesday increased its benchmark lending rates, a move that would result in an increase in EMIs. effective repo based lending rate (RBLR) revised repo rate (6.25 per cent) from December 7 to 9.10 per cent, as per the state-owned Bank of India posted on its website.

Private sector HDFC Bank has increased its marginal cost of funds based lending rate.MCLR) effective Wednesday.

HDFC Bank’s website said the one-year MCLR, which serves as the benchmark for many consumer loans, has increased by 50 basis points to 8.60 per cent.

ICICI Bank Had increased its MCLR rate before December 1. After the revision, the one-year benchmark rate was raised by 50 basis points to 8.40 per cent from 7.90 per cent. The benchmark one-year MCLR is used to price most consumer loans such as auto, personal and home loans.

earlier in the day reserve Bank of India (RBI) raised the key repo rate by 35 basis points to 6.25 per cent, the fifth straight hike since May.

Overall, the RBI has increased the benchmark rate by 2.25 per cent since May this year.

Consequently, the Standing Deposit Facility (SDF) rate has been adjusted to 6 per cent and the Marginal Standing Facility (MSF) rate and the Bank Rate to 6.50 per cent.

Other banks are also expected to follow suit after the RBI increased the key interest rate by 35 basis points. It is only a matter of time before banks raise the External Benchmark Based Lending Rate (EBLR) and Repo-Linked Lending Rate (RLLR) in line with the repo rate.