RBI may cut rates in coming months: Chanda Kochhar
"With inflation easing, I think that we would see policy rate cuts in the coming months," ICICI Bank MD and CEO said in an interview here.
The head of India's largest private sector bank, who is here in this Swiss Alpine resort town for the World Economic Forum Annual Meeting, said that the central bank has already in its last policy statement, indicated monetary policy easing in the fourth quarter of the current fiscal.
"The RBI has also been taking steps to ensure that liquidity is made available in the system. Wholesale term deposit costs for banks have also eased in the last few
months," Kochhar said.
She, however, added that the demand deposits have been under pressure for the system.
"While we would expect lending rates to come down as policy rates are eased, the extent of rate reductions by banks will also depend on the level and composition of deposit growth, the funding costs of banks and the demand for credit in the system," Kochhar said.
RBI in the mid-quarter monetary policy review last month, had kept key interest rates unchanged but had said that it is closely monitoring the evolving growth-inflation dynamics and it is likely to ease monetary policy in the January-March quarter.
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