You are here: Home » Economy & Policy » News
Business Standard

State Bank of India expects RBI to hold interest rate, says Dinesh Khara

Khara's comment comes only days before the monetary policy committee of the Reserve Bank of India (RBI), the country's central bank, is due to meet between Dec. 2 and Dec. 4

Topics
sbi | Interest Rates | RBI monetary policy

Reuters  |  MUMBAI 

'We have scratched barely 25-30% of the surface'

MUMBAI (Reuters) - State Bank of India expects the country's central bank to hold as inflation remains elevated, the chairman of India's largest lender Dinesh Kumar Khara said.

"The stance will continue to remain accommodative but they may not be in a position to cut interest rate in immediate future," Khara told a summit organised by the Hindustan Times.

Khara's comment comes only days before the monetary policy committee of the Reserve Bank of India (RBI), the country's central bank, is due to meet between Dec. 2 and Dec. 4.

India's retail inflation remained above 7% in October for a second straight month, with vegetable prices at elevated levels. At current levels, inflation is well above the RBI's medium term target of 4%.

Inflation remained high due to supply chain constraints which can be eased once India begins to unlock further, after when the RBI may be in a position to cut rates, Khara said.

Since March, the RBI has cut its repo rate by 115 basis points to cushion the shock from the coronavirus crisis.

 

(Reporting by Nupur Anand; Editing by Alexander Smith)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, November 26 2020. 23:09 IST
RECOMMENDED FOR YOU
.