ICICI Bank expects a rate cut Friday

Declining inflation may be seen as giving lever to cut rates

A day ahead of the RBI monetary policy, ICICI Bank CEO and managing director Chanda Kochhar today said moderating inflation would give the central bank more leeway to cut the policy rate.

 

"The overall inflation for march 2013 has come down below 6% and the core inflation has become 3.4%. Gradually we have seen some amount of moderation in inflation. And this moderatonin in  inflation can have further positive impact on giving central bank some more headroom in terms of policy rates," she said at a seminar on capital flows at annual meeting of Asian Development Bank here.

 

There are wide expectations that the RBI would cut the policy rate-- repo-- to perk up growth rate from estimated decade low 5 per cent in 2012-13

 ICICI Bank Sees Declining Inflation Giving RBI Lever to Cut Rates Tomorrow