HDFC Bank on May 1, 2022, raised its benchmarking lending rate by 5 percent. With an increase in lending rate, the EMI for existing borrowers will also increase. The bank has stated in the statement, “HDFC increase its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans are benchmarked by 5 basis points, effective from May 1, 2022.”
Interest rates are expected to rise in the coming months as global inflationary concerns have risen due to geopolitical tensions between Russia and Ukraine. Owing to such a situation, the Reserve Bank of India was earlier prompted to raise the inflation target.
The RBI bank kept unaltered the key repo rate to banks, it said it will focus on withdrawal of accommodation to ensure that inflation does not cross the set target. It is mandatory for the RBI bank to keep the retail inflation at 4 percent with a bias of 2 percent on either side.
