BANKERS’ TAKE

There is (in the policy review) for the first time recognition of potentially adverse global developments and there are also concerns about an unwarranted slowdown in domestic demand and credit. All this suggests that a re-assessment of the growth-inflation trade-off may now be required that might moderate the need for further policy tightening—Shikha Sharma MD, Axis Bank

While pricing of loans could change marginally the rate hike might not translate into an immediate increase in the Base Rate. Given RBI’s concerns over inflation, one more round of rate hike cannot be ruled out. I expect that credit growth would be around 19-20% and the GDP to grow around 8.5% —M D Mallya Chairman, Bank of Baroda

I feel that interest rates are close to their peak levels. There are three reasons for this; Firstly, the impact of earlier hikes may start showing now; Secondly, with the monsoons starting on a good note food prices may ease. Thirdly, with major economies facing problems commodity prices could ease thereby reducing imported inflation —Keki Mistry MD, HDFC

The rate hike and prevailing systemic liquidity conditions could lead to an increase in funding costs for banks, and in lending rates. Based on the trends across various segments, and the existing pipeline of approved projects, credit growth for the year is expected to be in the range of 18-20% —Chanda Kochhar MD & CEO, ICICI Bank

We continue to expect two more rate hikes of 25bps each taking the repo rate to 8.0% before the current tightening cycle draws to a close. Three factors could however get in the way of further hikes-- unrest in the global economy and financial markets, a resulting correction in commodity prices, and pronounced domestic growth slowdown in response to rate hikes and external factors —Gunit Chadha CEO, Deutsche Bank India

TOI