Business Daily from THE HINDU group of publications
Wednesday, Oct 22, 2008
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Wednesday, Oct 22, 2008 ePaper | Mobile/PDA Version | Audio | Blogs |
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Money & Banking
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Interest Rates ‘Banks will slash interest rate, but not now’ Our Bureau Thiruvananthapuram, Oct. 21 The repo rate cut is a clear signal to slash lending rates, but it is debatable if banks would go the distance just yet, say economists. Dr D.K. Joshi, Director and Principal Economist, Crisil, said the Reserve Bank has left nothing to imagination on what it expects of banks. He saw them acting over time, but was not sure if they have enough Government securities to leverage the repo window. According to Mr Ananda Bhoumik, Senior Director, Fitch Ratings, the repo cut could be read as a signal for banks to act. But liquidity concerns and margin pressures from reduced rates would make them think twice before going for the trigger. Mr Abheek Barua, Chief Economist, HDFC Bank, was of the view that the RBI has given a strong signal for banks to hold rates. Dr Subhada Rao, Chief Economist, YES Bank, said the timing and the extent of the repo cut was a welcome surprise. The aim is to smoothen out the credit flow while boosting overall confidence levels. ‘Interest rates may not come down soon’ More Stories on : Interest Rates | CRR & Bank Rates
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