Country's largest lender State Bank of India has reduced its MCLR (Marginal Cost of Funds based Lending Rate) by 10 basis points across all tenors.
The one year MCLR has come down to 7.90 per cent per annum from 8.00 per cent per annum with effect from December 10, 2019.
This is the eight consecutive cut in MCLR in FY 2019-20.
The announcement comes days after Reserve Bank of India (RBI) announced its monetary policy in which it maintained status quo on key rates. After five consecutive cuts in interest rates this year, RBI's six-member Monetary Policy Committee (MPC), headed by RBI Governor Shaktikanta Das, unanimously voted to hold the key repo rate at 5.15 per cent and reverse repo rate at 4.90 per cent.