SBI lowers fixed deposit, lending rates in 10th cut this year. Bank of England slashes interest rates to record low.
Down, Down, Down
The SBI has reduced its fixed deposit (FD) rates for certain tenors and marginal cost of funds-based lending rates (MCLR) across various tenors.
Its second reduction in a month, the country’s largest lender said retail term deposits would be slashed by 10 to 50 basis points for a few tenors. FDs maturing between 7 days to 45 days will offer an interest rate of 4.50% as against 4% earlier.
Meanwhile, the one-year MCLR has been reduced by 10 basis points to 7.75% from 7.85% earlier. This is the SBI’s 10th consecutive cut in MCLR in the current fiscal. [BS]
Hope for the Best, Prepare for the Worst
Following the example of the US Federal Reserve, the Bank of England has now announced an emergency rate cut. In a bid to shore up the already-stagnating economy amid the coronavirus outbreak, the Bank reduced rates from 0.75% to 0.25%, taking borrowing costs down to the lowest level in history.
"The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove large and sharp, but should be temporary," Governor Mark Carney said.
The Bank’s last emergency rate cut was in October 2008, during the Great Recession. [BBC]
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