New Delhi:A day after the Reserve Bank of India (RBI) opted for status quo in its monetary policy, state-owned Bank of Baroda (BoB) hiked benchmark lending rate by 0.1% or 10 basis points, making loans expensive. The bank has raised marginal cost of funds based lending rate (MCLR) by 0.1% to 8.40% for 1-year tenure, BoB said in a statement.

Similar cut has been made effective in other tenures, it said. The revised MCLR benchmarks are effective 7 April, it added. The hike will push interest rates on home and other loans linked to one-year MCLR by 10 basis points.

In its first bi-monthly policy review of 2018-19, the RBI on Thursday kept the key interest rate unchanged but cut the inflation forecast on lower food prices, sparking a rally in stocks and bond markets.

The Monetary Policy Committee, headed by RBI governor Urjit Patel, revised upwards its forecast of real GDP growth from 7.2% to 7.4%, which the ministry said is “broadly in line with the forecast in the Economic Survey". It further said, “inflation in fourth quarter of 2017-18 has been revised downwards from 5.1% to 4.5%.

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