Will banks lending interest rate come down?!
Posted on: 01/Jun/2015 3:38:22 PM - No. of views : (1792)
With Reserve Bank of India�s Financial Policy scheduled to be released tomorrow, there are expectations whether the lending interest rates will come down.
The expectation is mainly due to the fact that wholesale inflation has been continuing to fall over the last 6 months.
Retail inflation also has tended to come down.
Further, the deficit for the financial year 2014-15 has come under control at 4%.
During the financial year 2014-15, the economic growth has also increased to 7.3%.
The economic growth rate was 6.9% during the previous financial year.
Trends of growth can be observed in the manufacturing & services industry.
Hence, financial experts observe that the current scenario has increased the prospects of reduction of interest rates by Reserve Bank of India.
Central government Finance Minister Arun Jaitley, National Economic Adviser Arvind Subramanian and other senior banking experts have been stressing on the needs to reduce the REPO ratios.
Repo ratios were reduced twice during January & March by 0.25% each time.
However, Repo ratio was not reduced in the financial policy report released by RBI on 7th April.
Indian Banks� Federation President, Mr. T M Fasin, has informed that the capital stocks ratio of the banks should be reduced by 0.50%. This facilitate an influx of Rs. 40000 Crores in circulation.
