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The Reserve Bank has delivered the much expected 25 basis point cut in the repo rates, according to P Jayarama Bhat, Managing Director and Chief Executive Officer of Karnataka Bank. The statement on inflationary expectations, lower monsoon prediction and upward expected movement in oil prices would pose uncertainty on future rate cuts. “Any future cuts in rates are more data dependent,” he said. He said Karnataka Bank has already lowered the base rate by 25 basis points with effective from June 1.
Augurs well for economy
The repo rate cut, which was in line with widespread expectations, will augur well for the economy, according to SR Bansal, Chairman and Managing Director of Corporation Bank.
To a query on lending rate cut by banks, he said it is also linked with rates of deposits. Banks will discuss with their asset-liability committee for any decision on this, he said. The bank had reduced the base rate for lending by 25 basis points with effective from June 1. Our Bureau
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