After the Reserve Bank of India (RBI) raised its repo rate for the first time in nearly for years, several banks such as Punjab National Bank, Indian Bank and Bank of Baroda announced an increase in their lending rates, with effect from October 8. This will make loan borrowing expensive.

The apex bank on Wednesday had hiked its key lending rate by 25 basis points to 5.50 per cent, the first rate hike since February 2023 and had said near term rate cuts were off the table while changing its monetary policy stance from neutral to calibrated tightening.