The Reserve Bank said that deregulation of the interest rate on savings banks accounts would benefit savers, as it would enable lenders to come out with innovative products to attract more funds from low income households.
Concerned over high inflation rate, fuelled by rising food prices, Finance Secretary Ashok Chawla Friday said the steps by the central bank to curb liquidity were adequate and assured that interest rates will remain intact.
The Prime Minister’s Economic Advisory Council chairman, C Rangarajan, on Monday suggested that the Reserve Bank of India could reduce money supply and raise the interest rate to tame the rising prices of food articles.
The country`s largest private sector lender ICICI Bank on Thursday said lending rates will start going up any time now, quite contrary to the SBI Chairman`s projection that borrowers can breathe easy till Diwali.
The European Central Bank was set on Thursday to leave its main interest rate steady at a record low of 1.0 percent, analysts say, despite tighter credit and concern the eurozone could be hit by deflation.