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Rising inflation may lead to interest rate hike in future, says PNB chief

RBI will unveil its bi-monthly policy amid widespread expectations that the central bank may go in for a status quo for the third time in a row

Press Trust of India  |  New Delhi 

pnb, punjab national bank

Ahead of RBI's monetary policy review on Wednesday, Punjab National Bank Managing Director said lending rates are likely to go north due to hardening

"As of now interest rates are stable but the way is moving, they are likely to harden in the future," he said after announcing the third quarter numbers.

This seems to be a good news for the savers. However, borrowers will have to shell out extra if the lending rates go up.

will unveil its bi-monthly policy amid widespread expectations that the central bank may go in for a status quo for the third time in a row.


This would be the first policy announcement after the Union Budget 2018-19, that was unveiled on February 1.

Last week, raised its interest rates steeply by up to 1.35 per cent on bulk deposits of various tenure taking a cue from the country's largest lender State Bank of India.

Following the revision, on term deposit of 46-179 days was increased by 1.35 per cent to 6.25 per cent, effective February 1.

Besides, for term deposit of 180 days to less than 1 year was revised upward to 6.25 per cent from the earlier rate of 5 per cent, said in a statement.

In the maturity bucket of one year and above the has gone up 0.75 per cent.

Last month, SBI hiked the interest rate on bulk deposits of over Rs 100 million by up to 140 basis points.

The bank had last raised deposit rates by up to 1 percentage point in November. At least, three banks have already hiked lending rates last month.

First Published: Wed, February 07 2018. 00:52 IST