The ECB raised interest rates by 25bps (or 0.25%) to 1.5%.
China recently raised rates, by 25bps, to 6.56%.
Sweden also pushed its rates up to 2%, while Australia held rates steady at 4.75%.
Malaysia hiked the Bank Cash Reserve Ratio (CRR) to 4% (from 3%), while keeping overnight rates at 3%. CRR is the cash banks are supposed to hold against withdrawals (India has 6% CRR)
Indian rates are currently 7.5% for overnight repo (that’s overnight borrowing from the central bank)
In India, various banks have pushed their rates up:
- ICICI Bank pushed base rate up to 9.75% (up 25bps)
- SBI also went to 9.5% (up 25 bps)
- Corporation Bank (up 35 bps to 10.25%) , Canara Bank (up 25bps to 10.25%) and a number of public sector insurers have already done their bit.
For someone with a loan, this is not a lot of fun. But people tell me they only get letters saying that their EMIs have been extended in tenure, the value of each EMI is left unchanged. Have you had a different experience?
