All the major private banks have revised their base rates in last few days. Yesterday ICICI Bank had raised its base rate by 25 basis points to 10 per cent. Similarly country’s biggest mortgage lender HDFC raised its lending rate by 25 basis points.
While RBI had kept the policy rate unchanged in its first quarter monetary policy review, its liquidity tightening measures in the past few weeks have impacted short-term rates. On July 15, 2013 the central bank capped banks' borrowings under the liquidity adjustment facility (LAF) and increased the marginal standing facility (MSF) rate by 200 basis points to 10.25 per cent.