Repo rate hike discounted by Banks

The Ministry of Finance feels that impact of RBI’s repo rate hike had been already discounted by the banks. Many banks, including the State Bank of India, ICICI Bank had hiked their bench mark lending rates last week-before the RBI policy.

Though the repo rate hike may lead to marginal increase in interest rates, it was mostly discounted as interest rates are determined by a host of other factors.