New Delhi: State Bank of India Chairman
O P Bhatt said today no increase in interest rates is expected
in the near future, allaying apprehensions on the return of
the tight money policy.
"Hike is extremely unlikely," Bhatt told when asked
whether the rates of borrowing could be revised upward in the
next few months.
He said the SBI was lending at the "lowest rates" and any
more cut was not on the cards.
In the recent past, the country's largest bank has been
aggressive in cutting the lending rates, especially for those
buying homes and cars. It is extending both these loans at 8
per cent interest per annum.
Earlier this week, Finance Minister Pranab Mukherjee said
in Kolkata that he was against a tight money policy.
"I am not prescribing a tight money policy", he said,
pointing out that fiscal and monetary policies adopted by the
government and the RBI to combat the slowdown are paying
dividends and the signs of recovery have started to show up.
RBI, which has considerably eased the monetary policy to
provide liquidity to the crisis-hit industry, is slated to
announce second quarterly review of the monetary policy on
October 27.
With rising food inflation, there is an apprehension
whether the RBI could return to the high interest regime which
was followed by the central bank mostly in 2008.
Bureau Report
First Published: Friday, September 25, 2009, 16:28