IDBI to withhold PLR cut, awaits RBI cue

The Industrial Development Bank of India (IDBI) will reconsider its decision of rate cut following the rising inflation. On March 26, 2008, it announced a reduction in its benchmark Prime Lending Rate (PLR) by 50 basis points from April 1.

However, on March 30, 2008, it decided to wait for clues from the Reserve Bank of India (RBI) before it cuts rates. This means that home loans may not be cheaper.

Inflation shot up to a 13-month high of by 6.68 per cent on March 15. It was 5.11 per cent on March 1 and 5.92 per cent on March 8.