The raising of MCLR s primarily due to twofold factors emerging from the broad guidance of a lesser accommodative policy in future by the RBI and tweaking of the reverse repo rate.Given the kind of oil price fluctuations and a sharp rise in other commodity prices, immediate control of inflation is not seemingly possible and a rise in repo rate by RBI is expected soon. Moreover SBI had raised its fixed deposits rates in February to maintain its profit spread the increase in MCLR is a logical step," said yati Prakash Gadia, Managing Director, Resurgent India, an investment banking firm

Original Source: https://www.resurgentindia.com/