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Industry body Assocham has urged the Reserve Bank of India (RBI) to go in for 50 basis points cut in repo rate at the upcoming monetary policy review on April 7.
Further cuts in the repo rate could nudge banks to move faster on cutting lending rates and give them more comfort on the future trajectory of policy rates, Assocham Secretary General D.S. Rawat said in a letter to RBI Governor Raghuram Rajan.
So far this year, RBI has already gone in for two rounds of policy rate cuts aggregating 50 basis points.
Although the Central Bank has cut repo rate by 50 basis points, banks have been reluctant to cut their lending rates.
As a precursor to cutting lending rates, some banks had started to trim their deposit rates.
Indications are that lending rates would be cut in the coming days once the accounts for fiscal 2014-15 are finalised.
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