Tuesday, February 28, 2012

Why banks will ignore FinMin’s request to cut lending rates

.............. In other words, an inflation-wary RBI is unlikely to jump the gun on interest rates. Even if by some miracle the RBI does cut the repo rate, the benchmark policy rate that is currently at its highest since March 2008 at 8.5 percent, the truth is most banks will be unable to follow suit.........
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