The Housing Development Finance Corporation on Saturday increased its lending rates on housing loans by 30 basis points, or 0.3%, for all its customers. The revision will come into effect from May 9 across all slabs, ANI reported.

This move came three days after the Reserve Bank of India’s raised the repo rate by 40 basis points to 4.40%. The repo rate is the interest rate at which the central bank lends to commercial banks. Typically, banks and other lending institutions raise interest rates for their customers once the repo rate is hiked.

The revised lending rates of HDFC will be applicable for both existing and new customers of the lender.

The RBI increased the repo rate earlier this week with the aim of taming India’s retail inflation which accelerated to a 17-month high of 6.95% in March. This was for the third straight month that the price rise indicator was above the central bank’s mandated upper limit of 6%. Retail inflation is likely to rise further due to a jump in oil prices since Russia’s invasion of Ukraine has led to higher consumer prices.