One of India’s auto-loans major and the largest private sector bank, ICICI Bank has decided to source two-wheeler loans only through its branches and not at the dealers' end.

The bank has discontinued its two-wheeler loans at dealer's end effective August 15, 2008.  

Under its revised conditions, the two-wheeler loans now will only be available through its branches. However for cars, it would continue lending from the dealers’ showrooms.

According to the ICICI, The shift in the strategy is due to high operating costs.  

A day after Union Bank of India hiked its benchmark prime lending rate, the Corporation Bank has also decided to revise its lending rates upward by 50 basis points from the present level of 13.50%

Prague  - The Czech central bank cut the key two-week repo rate by a quarter point to 3.5 per cent Thursday despite high inflation in order to halt a rapid appreciation of the Czech koruna.

"The bank is fighting against the world's most appreciating currency," said Raiffeisenbank analyst Ales Michl. "It is so important for the bank to risk inflation."

The central bankers had hiked the key rate five times between May 2007 and February 2008 to fend off growing prices but have lately signaled intention to take a reverse step aimed at cooling the strong Czech currency.

Frankfurt  - The European Central Bank (ECB) left its key interest rate on hold Thursday amid growing economic concerns triggered by spiralling inflation and contracting growth.

London - The Bank of England Thursday kept interest rates on hold at 5 per cent in an attempt to balance inflation fears with growing signs of a serious economic slowdown.

Seoul  - South Korea's central bank raised its key interest rate Thursday to the highest level in seven and a half years in a bid to tame spiraling inflation.

The monetary policy committee decided to raise the base rate by 25 basis points from 5 per cent to 5.25 per cent, the Bank of Korea said.

It was the highest since early February 2001 and the first time the bank increased its interest rate since August 2007.

"The committee judges that this action should contribute to containing inflation expectations which have gathered strength influenced by the recent sharp rise in headline inflation," the bank said.

Unlike core inflation, headline inflation takes into account all types of inflation in an economy.