Short-term deposit rates may rise: SBI

Short-term deposit rates may rise: SBI
Post increase in the rates brought in by the Reserve Bank of India on Tuesday by an unexpected 50 basis points, anticipation has been made by the State Bank of India that the interest rates on short term deposits at banks might witness a hike.

This information was given by the Chairman of State Bank of India; Pratip Chaudhuri today after the annual monetary policy was released by the Reserve Bank of India. Another announcement was made by ICICI Bank"s Chanda Kochhar during the meet where she stated that the rise in the costs as the result of the increase in rates done by the central bank will in turn make the lending rates higher.

However, Chaudhuri had stated a day before that this hike brought in by RBI might deterrent the growth of the banking industry and moreover might badly affect the growth of the economy as a whole. "...inflation is something like 8 per cent plus and an increase in very high rate can have a danger of derailing the growth prospects," Chaudhuri said.

Read more about: rbi, sbi, interest, icici bank, inflation
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