The governor of the Reserve Bank of India (RBI) announced a surprise 40 basis point (bps) boost in key policy rates on Wednesday. The Cash Reserve Ratio (CRR) was also raised by 50 basis points, putting additional upward pressure on interest rates.

In response to the new RBI announcement, banks have announced interest rate rises on their repo rate related house loans. ICICI Bank and Bank of Baroda are among the banks that have raised their external benchmark related loan interest rates.

“The ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referred to RBI Policy Repo Rate with a mark-up above Repo Rate,” ICICI Bank declared on its website shortly after the announcement. Effective May 4, 2022, the I-EBLR is 8.10 percent p.a.p.m.”