All fresh and outstanding loans as well as deposit rates increased in June following the central bank’s second consecutive policy rate hike in June, the latest reserve Bank of India data indicates. But banks have not raised rates on outstanding loans at the same pace as they did later May increase policy rates,

weighted average lending rate (WALR) on new rupee loans of SCBs increased by 34 basis points (bps- one bps to 0.01 per cent) from 7.51 per cent in April and 8 bps in May 2022 to 7.94 per cent in June 2022. WALR SCBs on outstanding rupee loans rose 7 bps to 8.79 per cent in May and 14 bps to 8.93 per cent in June 2022.

It may be recalled that the Monetary Policy Committee voted for two successive policy rate hikes of 40 bps and 50 bps, respectively, in May and June, to rein in inflation expectations, which remained unchanged for more than six months. The percentage remains above the upper target band. median year median marginal cost of funds The based lending rate (MCLR) increased from 7.25 per cent in April to 7.40 per cent in May 2022 and to 7.55 per cent in June 2022.

weighted average domestic fixed deposit rate (WADTDR) SCB’s outstanding rupee fixed deposits rose 4 bps to 5.07 per cent in May and 6 bps in June 2022.