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Indian Bank raises special term deposit rates by 15 basis points
Indian Bank raised special term deposit rates by 15 basis points.
Key points
- The RBI raised the benchmark policy rate to 5.50% on October 7, the first hike in nearly four years.
- The MPC shifted its monetary policy stance to calibrated tightening, signaling that near-term rate cuts have narrowed significantly.
- Governor Sanjay Malhotra noted that 37% of commodities had inflation above 4% in August, up from 20% in March.
Why it matters. The shift to calibrated tightening indicates that rate cuts are off the table in the near term, with future actions likely to be either a hike or a pause.
Indian Bank increased interest rates on special term deposit schemes by 15 basis points on Thursday, effective October 23. The 555-day ‘Ind Grow’ scheme rate rose to 6.80 per cent from 6.65 per cent, and the 777-day ‘Ind Prosper’ rate reached 6.75 per cent from 6.60 per cent. This follows a Reserve Bank of India decision earlier this month to raise the repo rate by 25 basis points to 5.50 per cent.
Latest updates
Indian Bank raises special term deposit rates by 15 basis points
Indian Bank has raised interest rates on two special term deposit schemes by 15 basis points each. The 555-day 'Ind Grow' scheme rate has increased from 6.65 per cent to 6.80 per cent. Similarly, the 777-day 'Ind Prosper' scheme has seen a 15 basis point increase. These changes follow a recent repo rate hike by the Reserve Bank of India. The new rates come into effect on October 23.
RBI MPC unanimously raises repo rate by 25 basis points
The RBI released minutes on Wednesday showing all six MPC members supported the 25-basis-point rate hike. Governor Sanjay Malhotra stated that the duration of the hiking cycle depends on actual growth and inflation developments. The decision was driven by price pressures spreading across a wider range of goods. The committee aims to stabilize inflation through these monetary tightening measures.