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No scope for any increase in bank lending interest ratio - ICRA
Posted on: 29/Mar/2017 2:09:48 PM
A brief on the press report released by ICRA
The Reserve Bank of India had not revised the bank short-term lending interest ratio in the finance policy decided during February. Presently, the interest ratio remains low. It is understood that this situation will prevail for this financial year.
The retail price inflation rate during last January remained at 3.17 percent. However, during February, this increased to 3.65 percent.
It is estimated that during the current month of March, the retail price inflation may increase to 4.5 percent.
Still, this is lower that the target of 5 percent set by the Reserve Bank of India.
The Reserve Bank of India has also set the target for the medium term periods retail inflation to be kept under 3 percent in check.
So, in the Financial Policy set to be released by RBI in April, there may be no scope for any revision in the prevailing bank short-term lending interest rate ratio.
